KUALA LUMPUR: Datuk Zulkarnain Md Eusope, a former chief executive officer of Pharmaniaga Bhd, is slated to be Boustead Plantations Bhd's (BPlant) new CEO, sources said.

His appointment is expected to take effect in May.

The sources indicated that Lembaga Tabung Angkatan Tentera (LTAT) had given its blessings for Zulkarnain's appointment.

BPlant was taken private by LTAT earlier this year.

Zulkarnain was initially managing director of Pharmaniaga from Sept 1 2020 before being redesignated as CEO on Feb 22 last year and reportedly resigned less than three weeks later.

Pharmaniaga had fallen into the Practice Note 17 (PN17) category on Feb 27 last year, pursuant to its audited consolidated financial statements for the period ended Dec 31, 2022.

Pharmaniaga reported a staggering loss of RM607.3 million for the 2022 financial year, primarily attributable to a RM552.3 million impairment provision for unsold Covid-19 vaccine stock.

According to an industry analyst, the unsold vaccine stock issue had raised concerns about Pharmaniaga's risk management practices and strategic planning.

The analyst further stated that Pharmaniaga's overly optimistic projections of being able to sell vaccines to the private market and exporting them to overseas markets was the reason behind this issue.

Pharmaniaga's failure at the time to manage its vaccine inventory effectively and anticipate shifting demand dynamics highlighted glaring deficiencies in the company's risk management and decision-making processes, the analyst added.

In March this year, the Public Accounts Committee announced that Pharmaniaga had agreed to repay RM16.7 million to the government for 104 faulty ventilators received from China in 2020.

An industry observer pointed out that the faulty ventilator issue had cast doubt on the procurement processes and quality control measures in place at Pharmaniaga.

As BPlant is in the midst of a turnaround effort, the potential decision to appoint Datuk Zulkarnain as CEO will be watched closely.

A fund manager said it is important to be transparent about the selection process and the rationale behind appointing Zulkarnain for the BPlant CEO role.

https://www.nst.com.my/business/corporate/2024/04/1043890/former-pharmaniaga-chief-be-named-boustead-plantations-new-ceo