PETALING JAYA: Sarawak Consolidated Industries Bhd’s (SCIB) auditor KPMG PLT has on July 23 resigned with immediate effect.
SCIB has been seeking legal advice regarding recent events surrounding KPMG that has caused adverse speculation against the company. This is in light of a perception that the company shares similarities to Serba Dinamik Holdings Bhd which is currently in litigation with KPMG.
“Accordingly, concerns were raised by the company as to whether KPMG is able to continue acting independently in their capacity as auditor consonant with Rule 400.5 of the Malaysian Institute of Accountants By-Laws (on professional ethics and conduct),” SCIB noted in a separate Bursa Malaysia filing,” SCIB said in a statement.
Following this, KPMG has in its notice stated that the views and opinions of the company on KPMG’s independence, coupled with the potential of a claim by the company, has compromised KPMG’s ability to continue to independently discharge their professional duties as auditor of the company. In the circumstances, KPMG is constrained to give notice of their resignation as auditor of the group with immediate effect pursuant to Section 281 of the Companies Act 2016.
“We are currently in the midst of identifying a new auditor to fill the vacancy of the auditor and will make an immediate announcement upon finalisation of the appointment of a new auditor. Rest assured that SCIB remains committed to the audit reporting to be completed by October 2021,” group managing director/CEO Rosland Othman said.
Meanwhile, SCIB and its subsidiaries have accepted an engineering, procurement, construction and commissioning (EPCC) contract valued at RM138.50 million in Peninsular Malaysia.
SCIB’s subsidiary SCIB Industrialised Building System Sdn Bhd and its joint venture partner Sasoakai Resources Sdn Bhd accepted a letter of award and acceptance (LOA) from Terengganu’s Public Works Department for an EPCC contract in Terengganu for the maintenance of roadworks in the state. The project duration will be of five years commencing from Aug 1, 2021 to July 31, 2026. Previously, SCIB had on Feb 5 entered into a joint venture agreement in relation to the maintenance of roadworks contract in Terengganu on a concession basis for the tenure of 2021 to 2026.
“The project that we have secured gave us the momentum we needed to continue our expansion into Peninsular Malaysia. Any profits attributable to the group would be realised in stages over the tenure of the contract based on the project’s progress. The contract is expected to contribute positively to SCIB group’s future earnings over the duration of the contract,” Rosland added.