NMC funded failed ventures worth millions of dirhams

The collapse of NMC raised questions about its auditor EY

  
B.R. Shetty-Founder and Chairman of NMC group. Finablr has also been founded by the Abu Dhabi-based Indian billionaire. Image used for illustrative purpose.

B.R. Shetty-Founder and Chairman of NMC group. Finablr has also been founded by the Abu Dhabi-based Indian billionaire. Image used for illustrative purpose.

Troubled healthcare firm NMC Health has paid off millions of dirhams to a number of failed ventures of its founder BR Shetty's family members prior to the collapse of the debt-ridden group.

Around Dh2 million, and still counting, were paid through bank transfers to BR Shetty's daughters' failed multiple F&B, jewellery and flower arrangement ventures due to financial problems, sources said.

"This is fundamental to how NMC supported every venture of the family. It might be just the tip of an iceberg as the family members invested in over half a dozen businesses which either failed or didn't take off at all. And most of these alleged frauds were committed or had an inception prior to 2017 when Dr Shetty was the CEO," sources said.

The collapse of NMC also raised questions about its auditor EY, which is also under investigation by the UK watch dog. The auditor is also facing legal issues from German payment startup firm Wirecard.

The healthcare firm NMC has been caught in a whirlpool of over $6.6 billion of undisclosed debt while its senior former high management team is under investigation for financial irregularities.

Sources said the new management is trying to bring situation under control. It has drawn up a three-year business plan to stage a comeback. Following the collapse of the London-listed firm, the UK court appointed Alvarez & Marsal as administrator to oversee the operations.

Alvarez & Marsal declined to comment as the matter is still under investigation.
 

Copyright © 2020 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Legal