Finablr to miss accounts deadline amid fraud claims
Troubled payments business Finablr which is entangled in a fraud probe today said it would miss its deadline this week to publish its financial accounts.
The Travelex-owner said on 23 June that it had changed its accounting reference date to 28 February, resulting in a deadline of 28 August to publish its financial statements.
Finablr today said it “is currently unable to adhere to this deadline and will provide an update on the anticipated publication date when it is able to do so.”
Finablr and NMC Health, which were both founded by Gulf-based, Indian-born tycoon Bavaguthu Shetty, have been plagued with accusations of fraud in recent months.
The former chief executives of Finablr and NMC are among a group of 17 people who are claimed to have embezzled millions of UAE dirhams from the businesses, the Sunday Telegraph reported at the weekend.
According to a report prepared for Bavaguthu, brothers Prasanth and Promoth Manghat, who led NMC and Finablr respectively, used forged documents to siphon off the funds.
The report, which was prepared by Emirati firm Wise Consulting and commissioned by Shetty, sets out allegations against the 17 based on the tycoon’s bank records.
In April Shetty launched an investigation into the alleged fraud, saying that it had been carried out by a “small group of current and former executives at these companies”.
Shetty is facing a criminal investigation into the firm’s finances in the UAE.
At the end of last year, US short-seller Muddy Waters called NMC’s finances into question, which led to an internal investigation which uncovered billions in undeclared debts.
Shetty resigned as co-chair of the Finablr earlier this month as the UK tax authorities moved to shut down parts of the business.
Finablr, which is based in the United Arab Emirates, warned in March that it was at risk of going bust and called in US law firm Skadden to investigate any potential misconduct.
EY resigned as auditor of Finablr in March after the payments firm could not accommodate some adjustments it requested, including changing the composition of its board.