“Zelan Bhd, now under PN17 status, appoints Mohd Ariff Abd Samat as CEO following financial difficulties and a leadership change a year after Hazimi Baharum’s departure.”
Kuala Lumpur, 13th Aug 2024, 12.07pm – Zelan Bhd is a company under Practice Note 17 (PN17) status, has named Mohd Ariff Abd Samat as its new CEO, roughly a year after the construction engineering firm ended the contract of its former CEO, Hazimi Baharum.
Mohd Ariff brings over 18 years of experience in crucial roles, including internal audit, accounting and reporting, as well as business planning and budgeting in the oil and energy sectors.
Before joining Zelan, Mohd Ariff served as the group chief operating officer at Sarawak Consolidated Industries Bhd (KL) until July 2023. Prior to that, he held the position of general manager for special projects at Serba Dinamik Holdings Bhd (KL).
Zelan was classified as a PN17 company in May of last year after its external auditor, Nexia SSY PLT, issued a disclaimer of opinion on its audited financial statements for the fiscal year ending December 31, 2022 (FY2022). The auditor identified an unreconciled intercompany balance discrepancy of approximately RM30.79 million between receivables and payables in Zelan’s opening balances, which was not addressed in the company’s consolidated financial statements.
Nexia also highlighted that Zelan’s subsidiary, Zelan Holdings (M) Bhd, reported net receivables of RM241.76 million as of the end of FY2022, which needed to be fully impaired. This adjustment would reduce the group’s total assets to RM559.56 million, with total liabilities of RM715.72 million, resulting in a shortfall of RM156.16 million, where liabilities exceed assets.
About three weeks after entering PN17 status, Zelan terminated the contract of its then-CEO, Hazimi, before it was set to expire. Without providing a specific reason, the company stated that Hazimi was given three months’ salary in lieu of the required notice, as outlined in his employment contract.
