NMC hires ex-director of FBI to investigate Muddy Waters’ claims

SCANDAL-HIT hospital operator NMC Health has hired a former FBI director to carry out an investigation into allegations of financial wrongdoing.

Louis Freeh, a former federal judge and FBI director, and his firm Freeh Group, will conduct the inquiry after short-seller Muddy Waters issued its attack on NMC Health last month, accusing it of understating debt levels by abut $320m (£242m).

Mr Freeh was appointed director of the FBI by then president Bill Clinton in September 1993 and stayed in the post until June 2001. He set up Freeh Group in 2007.

Jonathan Bomford, chairman of the independent review committee, said it chose Freeh to provide a “completely independent, unbiased, comprehensive and transparent report that will address all of these allegations”.

NMC said it would review the allegations made by Muddy Waters and publish the results ahead of its full-year accounts in March.

Shares in NMC, which have fallen by more than 40pc since the allegations were first made by Muddy Waters, enjoyed a welcome boost, ending up 8pc at £15.58 yesterday.

Muddy Waters, which is headed up by former lawyer Carson Block, has also taken a short position in NMC, allowing it to make money by betting on a fall in the company’s share price.

The short-seller caused the value of lawsuit funder Burford Capital to more than halve last year after it targeted the company.

The hedge fund has also raised concerns about NMC’S corporate governance and its relationship with auditor EY.

NMC has previously labelled Muddy Waters’ accusations “demonstrably false” and called its report “false and misleading”.

The FTSE 100 company is the largest private healthcare provider in the United Arab Emirates and operates about 200 hospitals and clinics in 19 countries around the world.

This month, two of its biggest shareholders – Saeed Mohamed al-qebaisi and Khaleefa Butti al-muhairi, who is also NMC’S executive vice chairman – offloaded a 15pc stake at £12 a share.