THE interim liquidator (IL) involved in the winding-up of Serba Dinamik Holdings Bhd (SDHB) and three of its subsidiaries is facing a Malaysian Anti-Corruption Commission (MACC) investigation.

SDHB director Abdul Kadier Sahib revealed this in his affidavit filed at the Kuala Lumpur High Court (Commercial Division) on February 17.

He said the “ongoing investigation into the IL has been worrying the company board”. 

“I verily believe it is not in the best interest of the creditors to have an IL that is subject to an MACC investigation,” said Kadier in his affidavit-in-reply to the company’s stay application, which will be heard on Monday.

SDHB and its subsidiaries – Serba Dinamik Sdn Bhd, Serba Dinamik Group Bhd and Serba Dinamik International Ltd – were granted an ad-interim stay (temporary stay) on February 10 of the winding-up order against them.

Justice Ahmad Murad Abdul Aziz granted the temporary stay order pending the hearing of the companies’ permanent stay application.

Serba Dinamik and its subsidiaries are said to have owed syndicated, bilateral creditors from financial institutions and sukuk holders.

The judge had allowed the applications by six financial institutions and some of Serba Dinamik’s creditors to wind up the four companies on January 10.

In his affidavit-in-reply, Kadier said several MACC officials had visited Serba Dinamik premises on February 9, requesting to meet with the IL or his representatives.

The officials had then had met with the IL’s representative behind closed doors without the presence of the company’s officers, he added.

“Out of concern over this development, the company followed up with an inquiry to the MACC as to the subject matter that was being investigated. 

“The MACC informed the company that the subject matter of the investigation is related to the IL and not the company,” he said.

Kadier said the company was concerned with the MACC investigations against the IL.

“…Whether this may lead to any adverse impact on the IL’s performance with respect to his duty to preserve the business and assets of the company,” he said.

His affidavit also attached a copy of the letter from MACC to the company, dated February 13.

In the letter, MACC chief commissioner Azam Baki said investigations did not involve SDHB, urging company officials to cooperate in the investigation.

The High Court had appointed Victor Saw of PwC Malaysia as the interim liquidator in this case on August 22.

The IL has the power to control the companies’ affairs prior to the winding-up process. Once the winding-up order has been given, a liquidator then assumes the process.

This process is now suspended pending SDHB’s application for a permanent stay and pending appeal against the winding-up order.

In his affidavit, Kadier also listed several reasons why SDHB believes the IL was not acting in the interest of preserving the assets of the company and its subsidiaries.

He said there must be a business that is ongoing in the event their appeals succeed. 

However he said the “IL was disinterested in continuing the business of the group upon winding up of the company” although the IL is empowered to continue the business for a period of six months after the winding-up order. – March 3, 2023.