KUALA LUMPUR: KPMG PLT has tendered its resignation as the auditor for Sarawak Consolidated Industries Bhd (SCIB) with immediate effect.

       SCIB said on Monday it had received a notice in writing dated July 23 from KPMG PLT on their resignation.

       In a filing with Bursa Malaysia, SCIB said it 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).

       “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,” it said.

       In the circumstances, SCIB said KPMG was constrained to give notice of their resignation as auditor of the company with immediate effect pursuant to Section 281 of the Companies Act 2016.

       SCIB also pointed out there is no matter that needs to be brought to the attention of the shareholders of the company.

       SCIB added it was in the midst of identifying a new auditor to fill the vacancy in the office of the auditor pursuant to Section 271(2)(b) of the Companies Act 2016 and it would make an immediate announcement upon finalisation of the appointment of new auditor.