UPDATE 1-Malaysia Stock Exchange Asks Serba Dinamik to Appoint Independent Reviewer

(Add details, context)

KUALA LUMPUR, June 23 (Reuters) – Malaysian oil and gas service provider Serba Dinamik Holdings Bhd is to appoint an independent reviewer to address the issues raised by the company’s external auditor, the national stock exchange said on Wednesday.

In May, Serba said the KPMG auditor was unable to verify contracts and transactions worth Ringgit 3.5 billion ($ 841.55 million) with 11 clients.

Serba dismissed the concerns and said he saw no problem with the existence or legitimacy of the contracts.

“To bring clarity to the market, it is imperative that (Serba Dinamik) take the necessary steps to immediately appoint the independent reviewer to address the uncertainty surrounding the veracity and accuracy of the questions, as pointed out its external auditors, in a timely manner, “Bursa Malaysia said in a statement.

The exchange also requested a deadline for the appointment of the examiner.

Serba did not immediately respond to a request for comment on Wednesday.

On Tuesday, Serba filed a lawsuit against KPMG, claiming the auditor “negligently reported certain issues.”

KPMG has said it will vigorously challenge any legal proceedings.

In a separate statement released on Wednesday, Malaysia’s securities regulator said its investigations into Serba Dinamik were ongoing.

He had opened an investigation last month when the audit issues first came to light.

$ 1 = 4.1590 ringgits Report by Liz Lee; Editing by Martin Petty