DUBAI: A new board has been put in place at NMC Health, the troubled UAE-based hospitals group at the center of one of the biggest alleged frauds in the region’s history.
NMC, which is struggling under $6.6 billion of debts as a result of financial irregularities, was placed in administration last week by a court in London, where its shares are listed.
The administrators, management consulting firm Alvarez and Marsal (A&M), lost no time in removing the old board, including Emirati entrepreneur Faisal Belhoul who was chairman for just two weeks. Five other directors were also shown the door, replaced by four non-executives and a three-man team from A&M.
Joint administrator Richard Fleming said the new board had extensive experience in restructuring and was appointed to ensure “more robust standards of governance.” Michael Davis will continue as interim chief executive but does not sit on the group board. “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,” Fleming said.
“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.”
A spokesman for NMC did not know whether more than 2,200 doctors and nursing staff had been paid for the month of March. The February payroll was paid late as NMC’s financial position deteriorated.
Last week NMC’s founder, B.R. Shetty, said that he was undertaking his own inquiry into what had happened at NMC. “I am extremely eager and determined to bring to light the full facts, and the whole truth, around what has transpired to all stakeholders as quickly as possible,” he said.
