Bar Council vice-president Ezri Abdul Wahab said dropping the charges against public-listed Serba Dinamik and several of its senior executives had cast a bad light on capital market regulators.

The company and four officers were charged under capital market laws last December, with the AG dropping the case against them last month. The company and the officers were then fined RM3 million each by the Securities Commission Malaysia (SC).

In a statement, Ezri said dropping a case gives an impression of leniency and selective prosecution.

He said the Attorney-General’s Chambers (AGC) should refrain from making a decision that overrides the recommendations made by the regulators, in this case, the SC.

“There is a need for the AGC to provide details of how the decisions in such cases are reached, especially since it is a public interest case.”

Previously, former finance minister Lim Guan Eng had also questioned the dropping of charges against Serba Dinamik.

Last week, creditors filed winding-up petitions against Serba Dinamik and its subsidiaries. The creditors included banks that had given the company RM1.2 billion in financing, it was reported.

Serba Dinamik and its four senior executives were charged in December 2021 with submitting a false statement in relation to the company’s record-high revenue of RM6.01 billion for the 12 months ending Dec 31, 2020.

The AGC withdrew the charges against Serba Dinamik following a letter of representation by the company.