CEO Morning Brief

SCIB Auditor Resigns Citing ‘difficulties’ in Allocating Resources

Publish date: Thu, 23 Mar 2023, 08:41 AM
0 12,099
TheEdge CEO Morning Brief
SCIB auditor resigns citing ‘difficulties’ in allocating resources

KUALA LUMPUR (March 22): Nexia SSY PLT has resigned from its role as Sarawak Consolidated Industries Bhd (SCIB)’s external auditor because of “difficulties in allocating sufficient resources requested by the company” based on the fees charged.

In a filing with Bursa Malaysia on Wednesday (March 22), SCIB said, “Upon deliberation by the audit committee and board of directors of the company held today, the board has resolved to accept the resignation with regret and shall take the necessary steps to appoint new external auditors to fill up the casual vacancy”.

The largest maker of precast concrete products in Sarawak said the appointment of a new external auditor will be announced in due course.

Nexia was appointed by SCIB in August 2021, following KPMG PLT’s resignation.

KPMG had been embroiled in a dispute with Serba Dinamik Holdings Bhd, which together with SCIB, shares a major shareholder in Datuk Mohd Abdul Karim Abdullah.

KPMG had highlighted audit issues involving transactions of more than RM3.5 billion in Serba Dinamik and subsequently resigned as its auditor on June 24, 2021, after the latter filed a court action against it.

Subsequently, KPMG also resigned from its role as SCIB external auditor on July 26, 2021.

In announcing KPMG’s resignation then, SCIB said it had sought legal advice regarding recent events surrounding KPMG, which had caused adverse speculation against the company.

Shares of SCIB traded unchanged at 13 sen at the time of writing on Wednesday, giving the company a market capitalisation of RM72.96 million.

Source: TheEdge - 23 Mar 2023

Related Stocks
Be the first to like this. Showing 0 of 0 comments

Post a Comment