Six executives accused of involvement in a long-running fraud at NMC Health are blaming each other over the $1 billion accounting scandal that contributed to the company’s collapse, a UK court has heard.
The scale of wrongdoing that led to Abu Dhabi Commercial Bank losing $1bn was “extraordinary”, lawyers told the High Court in London, as it takes legal action against six former directors.
The company was responding to efforts by the six – who include founder Bavaguthu Raghuram Shetty and former chief executive Prasanth Manghat – to quash a worldwide freezing order on their assets and to stop the case being heard in England.
The bank argues that the case should be heard in the UK capital because it is centred around the London-listed company, which collapsed last year, with its auditors and administrators also in London.
The six feuding defendants are not unanimously agreed on where the case should be heard.
“These attempts to blame others, and each other, raise issues that ought properly to be resolved at trial in this court,” counsel for the bank Adrian Beltrami.
He said in court papers that the London-listed company was the “central vehicle for the conspiracy” and the bank had a “good arguable case” that each of the executives “had been engaged in a major fraud that was concealed for a number of years”.
NMC Health collapsed last year after a report by activist investor Muddy Waters alleged that the company had inflated its cash balances and understated its level of debt.
A subsequent investigation revealed more than $4bn of hidden debt that led to the company’s failure.
Investigators said documents were destroyed by executives as they tried to discover the scale of the fraud and who was responsible.
They said that executives at NMC Health were using loans to the company from 2013 to boost share price and their own pay packets rather than benefit the company, while creating false documents to suggest it was in rude health.
The National has previously reported that payments were made to a struggling food business set up by BR Shetty’s daughter.
The bank claims that it was duped over the company’s real position that prompted it to lend about $1.2bn to entities in the health care group.
Mr Shetty has long argued that he was a victim of fraud and has brought legal action against ex-directors, two banks and the company’s former auditors in New York.
He accused the directors, including Mr Manghat, of creating false invoices to artificially boost NMC Health revenue.
Mr Shetty has been "arguably the most liberal of the defendants in attributing blame elsewhere”, including criminal complaints against former colleagues in India – where he is believed to have remained since February 2020 – and the UAE, the London court was told.
The New York action by Mr Shetty and two of the other defendants “appears to be designed to deflect blame … and to assign blame to those further down the hierarchy who are said to have had a more direct role in implementing the conspiracy”, Mr Beltrami said.
The former NMC executives say the freezing order secured in London should be quashed and most say the case should be heard in the UAE.
The health care provider aims to exit administration and start operations under new ownership before the end of the year.
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Grand Slam Los Angeles results
Men:
56kg – Jorge Nakamura
62kg – Joao Gabriel de Sousa
69kg – Gianni Grippo
77kg – Caio Soares
85kg – Manuel Ribamar
94kg – Gustavo Batista
110kg – Erberth Santos
Women:
49kg – Mayssa Bastos
55kg – Nathalie Ribeiro
62kg – Gabrielle McComb
70kg – Thamara Silva
90kg – Gabrieli Pessanha
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
UNpaid bills:
Countries with largest unpaid bill for UN budget in 2019
USA – $1.055 billion
Brazil – $143 million
Argentina – $52 million
Mexico – $36 million
Iran – $27 million
Israel – $18 million
Venezuela – $17 million
Korea – $10 million
Countries with largest unpaid bill for UN peacekeeping operations in 2019
USA – $2.38 billion
Brazil – $287 million
Spain – $110 million
France – $103 million
Ukraine – $100 million
RESULTS
Manchester United 2
Anthony Martial 30'
Scott McTominay 90 6'
Manchester City 0
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How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
The biog:
From: Wimbledon, London, UK
Education: Medical doctor
Hobbies: Travelling, meeting new people and cultures
Favourite animals: All of them
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
