KUALA LUMPUR: Former Pharmaniaga Bhd chief executive officer Datuk Zulkarnain Md Eusope will likely assume his new role as CEO of Boustead Plantations Bhd (BPlant) this week.
Sources told Business Times that Zulkarnain may take office before BPlant's annual general meeting on June 7.
Although Pharmaniaga fell into a Practice Note 17 (PN) status under his stewardship, analysts opined that Zulkarnain may have emerged as a top candidate for BPlant due to his familiarity within the Armed Forces Fund Board's (LTAT) operations.
Business Times previously reported that Zulkarnain's possible appointment had received the nod of the LTAT board of directors.
National Council of Professors fellow Dr Azmi Hassan said the news did raise eyebrows due to Pharmaniaga's "unlucky" history with Covid-19 and vaccine procurement during Zulkarnain's tenure as the CEO.
"However, we cannot put the blame on him because the vaccine was a new thing during the pandemic and its procurement was done during the uncertainty period. We did not know what would happen in the coming months when Covid-19 was at its peak.
"I do not see any constraint that he cannot be appointed as the CEO due to that incident. I also do not think it demonstrated his incapability because that particular time was a tough period to navigate," he told Business Times.
Azmi added that LTAT may have given its green light to Zulkarnain's appointment as he would have agreed to steer the company under the plans that had been outlined after it was taken private.
"Zulkarnain has been in a company related to LTAT for quite some time so he probably knows the steps needed for BPlant's turnaround plans.
"Without tying him to Pharmaniaga's fiasco, I think he has the experience and tenacity to bring BPlant forward," he said.
BPlant was taken private by LTAT earlier this year.
Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun said Zulkarnain's appointment was not a political one as opposed to a "familiar" appointment.
"As Pharmaniaga also has a military background, it is not surprising that he is moved from one military related company to another, whatever his corporate performance might have been.
"But as BPlant is above all a plantation company, it could use a more seasoned planter to helm it," he said.
Oh noted that LTAT could have been transparent on the selection process. However, the fund might have wanted somebody it knows and comfortable with.
Zulkarnain was Pharmaniaga managing director from Sept 1 2020 before being redesignated as CEO on Feb 22 last year. He resigned less than three weeks later.
Pharmaniaga fell into PN17 category on Feb 27 last year, pursuant to its audited consolidated financial statements for the period ended Dec 31, 2022.
Pharmaniaga posted a 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.