PETALING JAYA: After dragging its former external auditor KPMG and stock market regulator Bursa Malaysia to court, Serba Dinamik Holdings Bhd initiated another legal action, this time against Ernst & Young Consulting Sdn Bhd (EY Consulting).

       Serba Dinamik said it had on Nov 5 filed an originating summons against EY Consulting, which was appointed in July to undertake a “special independent review”, at the High Court of Kuala Lumpur.

       Oil and gas services firm Serba Dinamik is seeking an interim injunctive relief against EY Consulting to restrain the latter from revealing any “findings, report, memorandum and opinion” about the group to anyone.

       In addition, it is seeking damages against EY Consulting.

       The appointment of EY Consulting as a special auditor was made under the directive of Bursa Malaysia.

       EY Consulting’s appointment was made after Serba Dinamik’s previous auditor, KPMG, highlighted questionable transactions worth some RM4.54bil.

       In retaliation, the company had sued KPMG for alleged negligence and breach of duties.

       Serba Dinamik now contends that EY Consulting is not an auditor as defined in the Main Market Listing Requirements or the Companies Act 2016.

       It also added that EY Consulting is not registered with the Audit Oversight Board.

       “EY Consulting’s affiliate is the auditor of Bursa Malaysia and hence lacked independence.

       “EY Consulting had acted contrary to its undertakings in the letter of engagement when it provided a ‘Factual Finding Update’ to the Securities Commission without seeking Serba Dinamik’s consent.

       “EY Consulting expected Serba Dinamik to seek its consent to release the ‘Factual Finding Update’ when it was not an auditor, it did not subject itself to any professional standards in the performance of its work and it disclaimed responsibility for its work,” it said in a stock exchange filing yesterday.

       The application for interim injunctive relief was fixed for hearing on Nov 11 and the case management for the originating summons was fixed on Nov 17.

       “Apart from the potential damages to be assessed and costs which may be awarded against EY Consulting and the corresponding legal costs, the originating summons is not expected to have any other material financial impact on the company for the financial year ending June 30, 2022,” stated Serba Dinamik.

       On Nov 3, the group had also filed an originating summons against Bursa Malaysia, just four months after it sued KPMG.

       The originating summons filed by Serba Dinamik sought to restrain Bursa Malaysia from exercising any power against the company, pending the full disposal of the suit.