Swift probe into NMC ‘wrongdoings’ crucial, says former executive chair
dubai — The former executive chairman of NMC Health said on Tuesday it remains crucial that an investigation into all the wrongdoings at the company should be pursued to bring to book all those responsible for the chaos the healthcare provider is facing.
Faisal Belhoul, who had quit within days after taking over the reins of NMC Health as its executive chairman following the appointment of joint administrators by a UK court last week, urged the new team “to act swiftly, equitably and in the best interests of all parties”.
In a statement, Belhoul — who is chairman of Ithmar Capital Partners — said: “The former board has now safely handed over the company to the administrator... I also reiterate that it remains crucial that the investigation into any and all prior wrongdoings at the company is fully supported and pursued with the relevant authorities, and that all involved parties are held accountable from within or outside the company. I will do all in my power to support this process, working with the administration team and other partners.”
In his previous role as executive chairman of NMC, he said his objective was “to ensure that the administration process commenced without resorting to legal battles, which would have been detrimental to all parties — the company, the thousands of healthcare professional it employs and the patients they treat, and ultimately the wider healthcare sector and the UAE”.
“On April 8, 2020, in the role of executive chairman, I and the then-board agreed to NMC Health entering administration. Although putting a company under administration has many downsides, this was the only possible scenario given the circumstances, especially considering the fact that ADCB [Abu Dhabi Commercial Bank] was willing to rescue the company as a going concern, rather than initiating liquidation procedures,” said Belhoul.
He added that he would remain at the disposal of the company, “not only as a shareholder but rather as a professional with healthcare sector experience acting in what I see a national duty at this time when the UAE is making every effort to control the spread of the Covid-19 pandemic”.
NMC Health, which has a market value of $2.4 billion and total debt of $6.6 billion, has seen its stock value deplete by more than half since December after US short-seller Muddy Waters questioned its financial statements and other irregularities.
Abdulaziz Al Ghurair, chairman of the UAE Banks Federation, had said what happened with NMC “is a world-class fraud, and the management and board members should be held accountable”.
It is estimated that more than 80 local, regional and international banks have exposure to the healthcare firm. UAE bourses had asked all listed companies in the UAE to announce their exposure; lenders in the UAE have announced nearly Dh10 billion exposures to NMC Healthcare.
On Monday, Richard Fleming, Mark Firmin and Ben Cairns of Alvarez & Marsal Europe, the joint administrators of NMC Health, appointed four new non-executive directors to provide “more robust governance and oversee the work with the management teams in individual NMC businesses”.
ADCB, NMC’s largest lender with an exposure of Dh3 billion, said NMC might have concealed material information from creditors, shareholders, rating agencies and regulators. It also recently disclosed suspected fraudulent activity, which has impacted the group’s financial position and the interests of ADCB and other key stakeholders.
All involved parties from within or outside the company [should] be held accountable. I will do all in my power to support this process, working with the administration team and other partners Faisal Belhoul,
Former executive chairman of NMC Health