Former bosses of Finablr and NMC Health face fraud accusations
The former chief executives of Finablr and NMC Health are among a group of 17 people who are claimed to have embezzled millions of UAE dirhams from the firms, the Sunday Telegraph reported today.
According to a report prepared for billionaire tycoon Bavaguthu Shetty, who founded the companies, brothers Prasanth and Promoth Manghat, who led NMC and Finablr respectively, used forged documents to siphon off the funds.
The report, which was prepared by Emirati firm Wise Consulting and commissioned by Shetty himself, sets out allegations against the 17 based on the billionaire’s bank records.
Back in April Shetty had launched an investigation into the alleged fraud, saying that it had been carried out by a “small group of current and former executives at these companies”.
The tycoon is himself facing a criminal investigation into the firm’s finances in the UAE.
In 2017 Shetty stepped back from day-to-day management of the two firms, and he resigned as non-executive chairman in February.
At the end of last year, US short-seller Muddy Waters called NMC’s finances into question, which led to an internal investigation which uncovered billions in undeclared debts.
As a result, in April consultancy firm Alvarez and Marshall were appointed as the company’s administrators.
The firm has told creditors that they are currently preparing legal action against the people that they think are responsible for the financial misconduct.
Ben Cairns, Alvarez and Marshall’s managing director, described the fraud as “well-organised, systematic and long-running” and involving “many people and companies”.
According to the new report, NMC staff used forged signatures to open bank accounts, transfer funds and sign cheques moving money from Shetty’s personal accounts.
Around £229m in transactions were carried out from one account alone, it is claimed.
However, the report fails to explain why some of the money that was moved ended up in the billionaire’s other private accounts.
The Manghat brothers, both of whom have left their respective companies over the scandal, deny the allegations.
A spokesperson for them said: “It is categorically denied that either Prasanth Manghat or Promoth Manghat have received any unlawful payments, and they strongly refute the accusations made that seem to be designed maliciously to distract attention away from those responsible for damaging the highly successful businesses they helped create.