|NMC Health censured by FCA over $4bn accounting scandal|
The Financial Conduct Authority (FCA) has censured NMC Health, the collapsed FTSE 100 company, following an investigation into the company's accounting scandal. The FCA found that NMC Health had misled the market about its debts, understating the amount by as much as $4bn and operating dual sets of accounting records. The company, founded by Bavaguthu Raghuram Shetty, was based in the United Arab Emirates and operated in 19 countries. The alleged fraud left unsecured creditors suffering a shortfall of up to about $4.7bn. The FCA identified three areas of concern: accounting malpractice, unreported supply chain finance facilities, and publishing false or misleading information about the group's debt position to investors. The FCA concluded that NMC Health had committed market abuse by publishing false or misleading information. The administrators, Alvarez & Marsal, continue their investigations and court claims, including against EY, NMC's former external auditor, to recover money for creditors.