KUALA LUMPUR (March 7): Pharmaniaga Bhd’s RM644.39 million net loss for the fourth quarter ended Dec 31, 2022 (4QFY2022) has caught the attention of the Dewan Rakyat as a government backbencher urged authorities to launch investigation into the pharmaceutical group given that it involves the financials of the Armed Forces Fund Board (LTAT).
“Regarding the issue of Pharmaniaga, MP for Ketereh (Datuk Khlir Mohd Nor)... often talks about LTAT, Pharmaniaga comes under LTAT, but I have never heard friends on the other side mentioned about the losses incurred by Pharmaniaga that are over RM600 million,” said Mohd Sany Hamzan [Amanah-Hulu Langat].
“I urge the police and MACC (Malaysian Anti-Corruption Commission) to immediately launch investigation [into Pharmaniaga], because this involves LTAT’s monies, we cannot compromise on matters related to misappropriation, breach of trust and corruption that plague our country,” he said in his debate on the revised Budget 2023 on Tuesday (March 7).
Pharmaniaga is 52%-owned by Boustead Holdings Bhd, which in turn is 59.42%-owned by LTAT.
LTAT, which is in the midst of privatising Boustead at 85.5 sen per share, also owns 8.6% direct interest in Pharmaniaga.
Pharmaniaga slipped into the red in 4QFY2022, versus a net profit of RM85.47 million in 4QFY2021, despite a 21% growth in revenue to RM862.72 million from RM711.72 million over the same period.
Over the weekend, local media reported that the group is seeking ways to clear its Covid-19 vaccine inventories, including exporting them to African nations and utilising them for possible mandatory booster shots for foreign workers in Malaysia.
Pharmaniaga’s losses were attributed to inventory write-down, no thanks to slow-moving inventories on Covid-19 vaccines of RM552.3 million.
Apart from Pharmaniaga, Mohd Sany also urged the government to have a predetermined date for the next general election, allowing both the public and civil servants to plan ahead.
“I also want to ask the government regarding the date for the general election, if possible, in this country, let’s have it determined and announce it early to the nation so as to make it easier to plan ahead not just for the people, but also for civil servants,” he said.
Shares of Pharmaniaga, which took a steep dive after recent quarterly results, closed 2.5 sen or 8.8% higher at 31 sen on Tuesday, giving it a market capitalisation of RM406.16 million.
Boustead, meanwhile, settled half sen or 0.6% lower at 85.5 sen, valuing it at RM1.73 billion.