KUALA LUMPUR: Top executives of oil and gas company Serba Dinamik Holdings Bhd, including its chief executive officer Datuk Mohd Abdul Karim Abdullah, have been acquitted by the Sessions Courts of charges involving offences under the Capital Markets and Services Act (CMSA) 2007.

       This follows a RM16mil compound payment imposed by the Securities Commission (SC) that was settled on May 9, the court heard.

       ALSO READ: Serba Dinamik, executives complete settlement of SC compound

       Deputy Public Prosecutor (DPP) Hashley Tajudin, who appeared before Sessions Court Judge Kamarudin Kamsun in one of the four separate courts, said that Mohd Abdul Karim and group chief financial officer Azhan Azmi had both settled their RM3mil compound each.

       "The SC confirmed yesterday that the compounds have been settled.

       "Following the compound payment, the prosecution is applying for the charges to be dropped under Section 254 of the Criminal Procedure Code.

       "We have no intention to pursue (the case), therefore we propose an order of discharge amounting to an acquittal for both," he added on Friday (May 13).

       The prosecutor also informed the court that similar applications would be made in the cases of Serba Dinamik (charged in its capacity as an entity), its executive director Datuk Syed Nazim Syed Faisal and accounts and finance vice-president Muhammad Hafiz Othman.

       Meanwhile, lawyer Datuk Firoz Hussein Ahmad Jamaluddin, who represented Mohd Abdul Karim and Azhan, had no objection to the acquittal and asked the court to return his clients' passports and bail.

       Judge Kamarudin then ordered for the acquittal and the return of the bail.

       The officers were previously charged separately in the Sessions Courts of Judges Ahmad Kamar Jamaluddin, Emelia Kaswati Mohamad Khalid and Sabariah Othman.

       Besides DPP Hashley, DPPs Zul’aida Zulkifli and Izzat Fauzan from the SC also appeared for the prosecution.

       On Dec 28, 2021, Serba Dinamik, Syed Nazim, Azhan and Muhammad Hafiz were charged by the Securities Commission Malaysia (SC) for submitting a false statement to Bursa Malaysia Securities Bhd.

       Serba Dinamik was charged under Section 369(a)(B) of the CMSA 2007 involving a false statement relating to the revenue recorded by the group in its financial report for the fourth quarter ended Dec 31, 2020 (4QFY20).

       The false statement submitted to Bursa Malaysia was in relation to a revenue figure of RM6.014bil contained in the quarterly report.

       Syed Nazim, Azhan, and Muhammad Hafiz Othman were each respectively charged under Section 369(a)(B), read together with Section 367(1) of the same Act.

       Section 369(a)(B) of the CMSA stipulates that a person who, with the intent to deceive, makes or furnishes any false or misleading statement or report to the commission, a stock exchange, a derivatives exchange or an approved clearing house relating to the affairs of a listed corporation commits an offence.

       The next day (Dec 29), Mohd Abdul Karim, in his capacity as a director of the group, was charged with the same offence under Section 369(a)(B) of the CMSA in relation to the same alleged false statement.

       Meanwhile, at the Shah Alam Sessions Court on the same day, Muhammad Hafiz was slapped with an additional charge for allegedly creating fictitious sales, causing falsified revenue to be recorded in Serba Dinamik’s earnings report for the quarter and year ended Dec 31, 2020.

       He was charged under Section 368(1)(b)(i) of the Capital Markets and Services Act 2007 (Act 671) (CMSA), punishable under Section 368(2) of the same Act.

       On March 17, the company and its officers sent a representation to the Attorney General's Chambers (AGC).

       On April 11, the courts were informed that the representation was "conditionally accepted" by the AGC.

       On Thursday (May 12), Serba Dinamik Holdings Bhd announced in a statement that the company and its top executives have completed the full settlement of their compounds.

       It said it made the full settlement on May 9, for the total amount of RM16mil, prior to the extended deadline of May 11.

       Serba Dinamik, Mohd Abdul Karim, Azhan, Syed Nazim and Muhammad Hafiz were each slapped with a RM3mil compound for their respective charges under Section 369(a)(B) of the CMSA.

       Additionally, Muhammad Hafiz was imposed with another RM1mil compound for the charge under Section 368(1)(b)(i) of the CMSA in Shah Alam.

       Muhammad Hafiz's case in Shah Alam is fixed for mention on May 19.