Dear MSWG,

Referring to one of the MSWG Corporate objectives:

Ø  To initiate, where appropriate, reports to regulatory authorities and transform MSWG into an effective deterrent of events or activities that are detrimental to the interests of minority shareholders.

 

Referring to below theedgemalaysia reporting:

https://theedgemalaysia.com/article/ag-says-decision-compound-serba-dinamik-executives-based-circumstantial-evidence-against

{KUALA LUMPUR (13 May 2022): Following a long period of silence on the Serba Dinamik Holdings Bhd criminal proceedings-turned-compound, the attorney general has now come out to say its decision for the compound was grounded on its stance that the evidence against the accused parties was "circumstantial in nature".

 

The Attorney General's Chambers (AGC), which in December 2021 consented for the Securities Commission Malaysia (SC) to prosecute Serba Dinamik and four top executives for allegedly issuing false statement to Bursa Malaysia, switched its consent to a compound in March 2022 following a letter of representation from the accused.

 

The accused parties paid the compound totalling RM16 million after some delays. They have been given a discharge and acquittal, a lawyer representing them told The Edge on Friday (May 13).

 

In a three-page statement, Attorney General Tan Sri Idrus Harun said that the AGC was of the view that "public interest would be better served" by compounding the offences allegedly committed.

 

This, he said, was "in light of the evidence in support of the charges and to avoid a long and protracted trial". However, the statement did not elaborate on the acquittal.

 

Idrus said criminal proceedings "ought not be pursued" against Serba Dinamik and the executives "due to the economic consequences".

 

Further, he said the impact of the charges on Serba Dinamik "is disproportionate with the severity of the alleged offences committed", rather, the compound was "an adequate form of punishment".}

 

Fast forward to today: The hardworking Bursa SC is right in taking BOD of Serba Dinamik to court and Attorney General Tan Sri Idrus Harun is wrong on facts or had been misled by a letter of representation from the accused. Since Bursa SC cannot reinitiate charges against the accused due to double jeopardy hence justice is not served and the accused are enjoying their ill-gotten wealth that prove crime does pay.

 

If I am not mistaken MSWG is still a minority shareholders of Serba Dinamik and hence I urged MSWG to spearhead a civil class action on behalf of minority shareholders seeking redress and  compensation against/from the perpetuates and rogue corporate bigwig and lawyer complicit in the above fraud case.

 

Below video and Bursa announcement are the hard evidence of rogue corporate bigwig and lawyer complicit in misleading minority shareholders/investing public and even attempting to mislead the court in filing legal action against external auditor.

https://www.youtube.com/watch?v=vssNP00vxng

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3168505

 

MSWG with its vast resource of legal team should step up and take up the gauntlet when Bursa SC was handicap by AGC to take action against crooks and truly transform MSWG into an effective deterrent of events or activities that are detrimental to the interests of minority shareholders and investing public.

 

Eagerly looking forward MSWG action and thank you very much

 

Thank you

 

Best Regards

Lee Soon Sheng

 

PS: Referring Jaks 22 th AGM minutes:

1.2.1 Goodwill-construction segment

Refer to note 10 of the financial statement, impairment of goodwill for the current financial year is RM23.5 million.

Goodwill is subject to annual impairment test. This requires as estimation of the value-in-use and fair value less costs of disposal of the cash-generating units to which the goodwill is allocated. Estimating the value-in-use amount requires the Group to make as estimate of the expected future cash flows from the CGU and also to choose a suitable discount rate in order to calculate the present value of those cash flows. When fair value less costs of disposal calculation is used, management estimate the expected selling price of the assets or cash generating unit less its estimated cost to sell. The objective evidence during our course of audit indicating the recoverable amount is less than the carrying amount of the goodwill, impairment loss is recognised in the P&L. According to MFRS136.124, An impairment loss recognised for goodwill shall not be reversed in a subsequent period.

 

1.2.2. Trade receivables, other receivables and contract assets 

Refer to note 13,14 and 15 of the financial statements, impairment of trade receivables, other receivables and contract assets amounted to RM 8.7 million, RM 27.6 and RM 4.3 million respectively for the current financial year.

The impairment computation is based on expected credit loss model in accordance to MFRS139. We taken into account the management's plan and action taken to recover the trade receivables, other receivables and contract assets at the date of the report. However, based on the accounting standard, accounting policy (refer to note 2(c) to the financial statements), computation and objective evidence, the above impairment is recognised to the current year P&L). If subsequently the trade receivables, other receivables and contract assets being recovered, the impairment amount will be reversed

 

Total receivables impairment for the last 5 years amounted to RM 167 million and reversal of impairment amounted to RM13.6 million make up total net impairment of RM 153.5 million. For the written-off of receivables please refer to reply 1.1. For the basis of trade receivables impairment please refer to 1.2 and 1.2.2. All the material related party transactions are disclosed in note 35 (b) to the financial statement. During our course of audit, we are not aware of other related party transactions

 

MSWG and Bursa SC need to step in to hold BOD responsible, accountable and answerable on impairment of goodwill, receivables, contract assets and etc or else more public listed companies BOD will used MFRS accounting standard to whitewashed fraud, malpractice, impropriety, misconduct, incompetent and etc with impunity.