Abu Dhabi Commercial Bank (ADCB) has begun criminal proceedings against NMC Health officials for their alleged involvement in the financial irregularities.
ADCB, which has the highest exposure to NMC at Dh3 billion, issued a statement today confirming that it has “initiated criminal legal proceeding with the Attorney General in Abu Dhabi against a number of individuals in relation to NMC Health Group.
Adding that this was consistent with the bank’s objective to protect its interests, the statement also said, “ADCB continues to work closely with other creditors and the joint administrators to ensure continuity of NMC Health’s operations and rapid recovery of the business.”
Earlier yesterday UK-court appointed administrators of NMC Health announced the formation of a new board of directors who have been tasked with the implementation of corporate governance changes in the group on a priority basis.
NMC Health, whose current market value is US$2.4bn, has been embroiled in one financial irregularity scandal after another ever since Muddy Waters blew the lid on the state of affairs. The London-listed healthcare provider has a total debt of US6.6bn and several lenders have revealed details of their exposure to the healthcare group and to Finablr, also founded by NMC founder BR Shetty.
More than 80 local, regional and international banks are said to have exposure to healthcare firm with UAE entities having nearly Dh10 billion exposure to the debt-ridden healthcare firm, prompting the chairman of the UAE Banks Federation to call for board and management of NMC to be held accountable for the financial irregularities.
