Thursday 27 February 2020

NMC’s Woes Deepen as Investigation Finds Financial Discrepancies - Bloomberg

NMC’s Woes Deepen as Investigation Finds Financial Discrepancies - Bloomberg:

NMC Health Plc fired its chief executive officer as it revealed financial discrepancies that have worsened the crisis for the Middle Eastern hospital chain targeted by short seller Muddy Waters Capital LLC.

Founder Bavaguthu Raghuram Shetty and former Vice Chairman Khaleefa Bin Butti controlled entities used for NMC’s supply chain financing, the company said late Wednesday. The board was unaware of these financial arrangements, which had been in place since early 2018, NMC said. Shetty was forced off the board earlier this month amid concerns he’d misrepresented his shareholdings.

Operator of the largest medical network in the United Arab Emirates, NMC announced a management overhaul along with the latest revelations. CEO Prasanth Manghat was dismissed, and Chief Financial Officer Prashanth Shenoy has been granted extended sick leave. An unnamed member of the treasury team was suspended because of “a belief that the independent review has been obstructed,” and the company is looking at whether others are involved.

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