NMC Health administrators appoint new board of directors
NMC Health’s administrators have replaced the board of the scandal-hit healthcare chain in a bid to improve governance.
Consultancy firm Alvarez and Marshal have dismissed the previous board and replaced them with four non-executive directors to “provide more robust governance and oversee the work with the management teams”.
Alvarez and Marshal were appointed as administrators to NMC on Thursday, following a petition presented by Abu Dhabi Commercial Bank, one of its largest creditors.
Richard Fleming, joint administrator of NMC, said: “We formed a new board with extensive restructuring experience to ensure more robust standards of governance in NMC Health.
“The board has already met to begin the detailed work necessary to create the governance platform in the group supporting real stability for NMC’s operating businesses.
“Our immediate focus is also to work with the management teams in the operating companies to ensure that NMC’s doctors, nurses and care workers have everything they need, every day, as they work tirelessly to ensure continuity of care for patients, which is especially important as the world fights the COVID-19 pandemic.”
NMC, which is the largest healthcare provider in the United Arab Emirates, fell into strife in December after shortseller Muddy Waters questioned its financial statements last year.
After launching an internal investigation, the company said it had discovered evidence of fraud and ousted its founder BR Shetty – who denies wrongdoing – and suspended its shares.
In February, the Financial Conduct Authority launched an investigation into the former FTSE 100 company.
The company has a large role to play in the UAE in its fight against Covid-19.
The Financial Times reported today that Fleming sent a letter to NMC staff underlining the importance of keeping the company open.
“In the case of NMC, given its importance to the UAE’s healthcare system, keeping the business going is a vital social priority,” he said.