KUALA LUMPUR (Dec 4): TMC Life Sciences Bhd (KL:TMCLIFE) said its suspended CEO, Wan Nadiah Wan Mohd Abdullah Yaakob, has been found guilty of misconduct following a domestic inquiry.
“Pursuant to the said domestic inquiry and upon deliberation by the independent domestic inquiry panel, Puan Nadiah has been found guilty of all five charges of misconduct levelled against her,” TMC told Bursa Malaysia on Wednesday.
The healthcare provider said its board will now determine appropriate disciplinary action against Wan Nadiah.
"The board will make further announcements on this matter at the appropriate time,” the company added.
The domestic inquiry followed failed attempts to reach a settlement after the issuance of show-cause letters and a mediation process. The inquiry provided Wan Nadiah with an opportunity to present her case before an independent panel.
Last week, Wan Nadiah pushed back against the allegations, claiming that the company was attempting to "pin the blame" on her for certain contract decisions.
According to a representation letter penned by her that was filed with Bursa Malaysia, the five misconduct allegations relate to the termination of contracts with Great Eastern Life Assurance (M) Bhd and Allianz Life Insurance Malaysia Bhd, as well as the entry into a contract with T-Systems Malaysia Sdn Bhd.
The representation letter was in response to a requisition notice issued last month by TMC's two largest shareholders — Sasteria (M) Pte Ltd and Johor Regent Tunku Ismail Sultan Ibrahim — calling for an extraordinary general meeting to remove Wan Nadiah as group CEO and director. Based on the company’s latest annual report, Sasteria holds a 70.13% stake, while Tunku Ismail owns 7.64%.
Wan Nadiah was suspended from her roles as group CEO of TMC and CEO of Thomson Hospitals in January this year. Initially, she faced six allegations of misconduct, which expanded to 15 in March, then reduced to eight in August, and finally narrowed to five during the recent domestic inquiry proceedings.
For ist first financial quarter ended Sept 30, 2024, TMC’s net profit declined 80.6% to RM2.94 million, from RM15.14 million a year earlier, as revenue fell 11.3% to RM81.97 million, coupled with higher staff costs and other operating expenses.
The company attributed the lower earnings to the termination of certain customer contracts and discounts offered to institutional customers.
Shares of TMC Life Sciences, which have fallen 32% year to date, closed unchanged at 51 sen on Wednesday. At this price, the company is valued at RM888.4 million.
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