THE Attorney-General’s Chambers (AGC) should explain why Serba Dinamik Holdings Bhd was let off with only a fine despite submitting a false report to Bursa Malaysia, said the Malaysian Bar today.

Bar vice-president Ezri Abdul Wahab said the AGC should take the advice of financial regulators, like the Securities Commission (SC), to ensure proper penalties are imposed.

“The Malaysian Bar is concerned about the lack of transparency in this issue, given the wider impact that the Serba Dinamik compound has on the integrity of the governance and regulatory framework of the capital market,” he said in a statement today.

“The Malaysian Bar implores the AGC to make a full and frank disclosure on the reason, if any, for the issuance of compounds to Serba Dinamik and the accused individuals, instead of proceeding with prosecution.

He said the AGC should engage in a purposeful consultation process with regulators to ensure proper penalties are imposed.

In December, SC pressed charges against Serba Dinamik directors and officers for submitting false information to Bursa Malaysia, an offence under section 369(a)(B) of the Capital Markets and Services Act 2007, which carries a jail term of up to 10 years and fine of up to RM3 million upon conviction.

It also secured a warrant for the arrest of company CEO and group managing director Mohd Abdul Karim Abdullah.

However, earlier this month, each accused saw their criminal charges substituted for a RM3 million compound.

This comes after the public prosecutor accepted Serba Dinamik and the accused individuals’ representation to the AGC.

Ezri said while the AGC wields great power, it should not overrule the SC advice to prosecute as it may affect public perception.

“Regulators exercising their statutory duties must be given the liberty to enforce law and regulations against wrongdoers.

“Such leniency is likely to create a negative perception of selective enforcement by authorities and that the decision of regulators can be overruled.

“It is our view that the considered opinions of market regulators – in this case, SC and Bursa Malaysia – should be preserved and executed accordingly.”

Following the Serba Dinamik fiasco, SC executive chairman Syed Zaid Syed Jaffar Albar resigned on April 29.

Three other senior managers exited after him, but SC said the three resignations are not linked to Syed Zaid’s resignation. – May 6, 2022.