Embarrassed B R Shetty helplessly resigns from Abu Dhabi’s ailing NMC Health

News Network
February 17, 2020

Abu Dhabi, Feb 17: NMC Health Plc, a hospital operator targeted by short-seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid investor concern he faced a margin call and misrepresented his stake.

The board asked for Co-Chairman Shetty’s resignation and it takes effect immediately, according to a person with knowledge of the situation. NMC has lost four board members since Friday, including Vice Chairman Khaleefa Butti, whose holdings are also being probed. The stock, the worst performer on the FTSE-100 Index this year, fell as much as 9.2 percent Monday morning and then rebounded.

“The resignation of senior board members should be viewed positively,” said Abdulla Nahlawi, an analyst at Rasmala Investment Bank in Dubai. “The credibility of the current board has been jeopardized with the unfolding of the recent events.”

NMC shares lost almost half their value the first week of February on speculation the company’s main investors faced a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million of those shares as “enforcement of security,” NMC said.

NMC operates the largest medical network in the United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. The shares started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.

Shetty, 77, was born in India and founded NMC in the 1970s after moving to Abu Dhabi. His spokesman said a legal review of the situation is ongoing and declined further comment.

Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq also stepped down because they were appointees of Shetty and Butti, NMC said, adding that they had no knowledge of the share transfers.

Questions remain over the role of Shetty’s family at the company. His wife and son-in-law both hold roles in senior management.

Almost 10 per cent of NMC’s freely traded shares are shorted, according to Markit Securities data. In mid-December about a third of them were.

Last week GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for NMC. Under U.K. takeover rules, it has until March 9 to make a bid.

NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review. The review is due to be completed before the company issues its financial results in March, the person said.

NMC said Mark Tompkins will continue as the company’s sole chairman.

Comments

sunita kejriwal
 - 
Monday, 17 Feb 2020

BRS could not fool all the people all the time!

 

Bhakth
 - 
Monday, 17 Feb 2020

Illegal way of earning will not last for long. 

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News Network
March 10,2020

Bengaluru, Mar 10: With concerns growing by the day, the Karnataka government is readying three more labs to test throat swab samples.

Currently, only two labs in Bengaluru — National Institute of Virology and Virus Research and Diagnostics Laboratory (VRDL) lab attached to Bangalore Medical College and Research Institute — are categorised biosafety level 2+, a requirement for coronavirus tests.

Now, the government is working on upgrading three more labs, one each in the government medical colleges at Hassan, Mysuru and Shivamogga. “The labs will be ready within one week,” the authorities said.

Currently, the labs are testing only throat swab samples of suspected patients and taking 24 hours to give the results. “A patient’s blood sample will be collected only if he or she tests positive for covid-19 infection in the first throat swab sample.

While earlier the state would send all samples of suspected coronavirus cases to NIV, Pune, the two labs were upgraded to biosafety level 2+ in mid-February.

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News Network
April 18,2020

Bengaluru, Apr 18: Hours after announcing that two-wheelers will be allowed to ply and that IT/BT companies can resume operations with 33 per cent strength, Chief Minister B S Yediyurappa on Saturday took a u-turn and rolled them back, citing “public opinion” as the reason. 

Earlier in the day, Yediyurappa announced that, after April 20, there will not be any restriction on the movement of two-wheelers in areas that are not COVID-19 containment zones. Yediyurappa also said that a third of IT/BT employees will be allowed to go to the office after April 20. 

“In the backdrop of public opinion and after discussions with senior officials, it has been decided that the prohibition on two-wheelers will continue throughout the lockdown period,” a statement from the Chief Minister’s Office said. “And in the IT/BT sector, only essential services will be allowed and the work-from-home policy will continue.” 

According to sources, the u-turn came following opposition from Yediyurappa’s Cabinet colleagues. “If I was in the meeting, I’d not have allowed it,” a minister said. Only Home Minister Basavaraj Bommai and Revenue Minister R Ashoka were in the meeting Yediyurappa held earlier in the day. The Opposition also stemmed from the fact that there was no need to make decisions on the lockdown when the Cabinet was scheduled to meet on April 20, sources said. 

The incoordination was apparent on Friday when Deputy Chief Minister CN Ashwath Narayan, the IT/BT minister, said 50 per cent of employees in the sector will be permitted to work while Yediyurappa said this would depend on the number of cases reported in the coming days. 

Other announcements made by Yediyurappa remain unchanged.

“Places, where COVID-19 cases are reported, will be identified as containment zones. In such containment zones, an incident commander will be appointed and given magisterial power. Teams comprising the police and health department officials will oversee the lockdown,” Yediyurappa said. “Lockdown will be much more stringent in these areas and no one will be allowed to step out. Essential supplies will be delivered home.”

According to Bommai, there were 32 containment zones in Bengaluru and ‘hotspots’ have been identified in eight districts.

With an eye on restarting economic activities, the government will allow construction work and industries. “In urban areas, construction work will be allowed to start wherever construction workers have the facility to stay on site,” Yediyurappa said. “The manufacturing sector in rural areas and industrial units located in the special economic zones (SEZ) and townships in urban areas will be allowed to function,” he said.

Stating that inter-state travel will be prohibited, Yediyurappa said the districts of Bengaluru Urban, Bengaluru Rural and Ramnagara will be considered as one only for the movement of industrial workers.

Asked about liquor sale, Yediyurappa said a decision will be taken after May 3. The government has already prohibited liquor sale till April 20 midnight.

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News Network
June 5,2020

Newsroom, June 5: The union health ministry has announced new rules for shopping malls which have been permitted to open from June 8, except those falling in containment zones.

The guidelines will come into effect from Monday and cinema halls, gaming arcades and children play areas in these establishments will remain closed.

Here is the complete list of standard operating procedures issued by the ministry to be followed in shopping malls to contain the spread of COVID-19.

•   Thermal screening of all visitors mandatory at entry point, along with compulsory hand hygiene. Only asymptomatic visitors will be allowed to enter the shopping mall .

•  It will be mandatory for all visitors as well as workers to wear face masks at all times inside the mall. 

•  Posters and audio-visual media on preventive measures about COVID-19 should be displayed prominently.

•  Visitor entry to shopping malls should be allowed in a staggered manner and adequate manpower be deployed by mall management for ensuring social distancing norms.

•  All employees who are at higher risk like elderly, pregnant women and those having underlying medical conditions should take extra precautions. They should preferably not be exposed to any front-line work requiring direct contact with the public.

•   Proper crowd management in the parking lots and outside the premises – duly following social distancing norms shall be ensured. Preferably, separate entry and exits for visitors, workers and goods/supplies shall be organised.

•   The staff for home deliveries should be screened thermally by the shopping mall authorities prior to allowing home deliveries and required precautions while handling supplies, inventories and goods in the shopping mall must be ensured.

•   Physical distancing of a minimum of 6 feet, when queuing up for entry and inside the shopping mall should be maintained as far as feasible while the number of customers inside the shop should be kept at a minimum, so as to maintain the physical distancing norms.

•   The number of people in the elevators should be restricted and use of escalators with one person on alternate steps should be encouraged.

•   Number of people in the elevators shall be restricted, duly maintaining social distancing norms. Use of escalators with one person on alternate steps may be encouraged.

•   Effective and frequent sanitation within the premises shall be maintained with particular focus on lavatories, drinking and hand washing stations/areas

•   Cleaning and regular disinfection of frequently touched surfaces  to be made mandatory in all malls in common areas as well as inside shops, elevators, escalators etc.

•   In the food-courts, adequate crowd and queue management is to be ensured and not more than 50 per cent of seating capacity should be permitted.

•   Food court staff should wear mask and hand gloves and take other required precautionary measures, the seating arrangement should ensure adequate social distancing between patrons as far as feasible and tables should be sanitized each time a customer leaves.

•   Gaming arcades, children play areas and cinema halls inside shopping malls shall remain closed.

•   Spitting should be strictly prohibited and installation and use of Aarogya Setu App shall be advised to all.

•   The ministry advised persons aged above 65, those having comorbidities, pregnant women and children below the age of 10  to stay at home, except for essential and health purposes.

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