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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Agencies
July 23,2020

Bengaluru, Jul 23: A city hospital here has banned woman Covid patients from wearing dupatta (long scarf) or similar garments, after two women committed suicide, said an official on Thursday.

"Two patients committed suicides with their sarees, that's why we have changed the dress code," KC General Hospital superintendent Venkateshaiah said.

As part of the new dress code, the hospital has mandated that women patients should wear operation theatre dress, even though some older patients are not in favour of it.

Incidentally, both the deceased women went to the bathroom and hanged themselves with their sarees.

Meanwhile, the hospital has also asked the neighbouring patients to be vigilant and accompany them to the washroom.

"With the advice of our psychologist, two adjacent patients have been given the precaution that whenever a depressed patient goes to the bathroom, please go with them and stand outside to take care of them," said Vekateshaiah.

Similarly, the hospital is also thinking of giving a small dose of sedation to make them sleep in the night to avoid waking up.

To rejuvenate the spirits of the patients, the hospital has arranged televisions to show them the best health practices, programmes on meditation, movies and entertainment.

"We are not showing them only news, but also good food habits, how to take care of oneself amid Covid," he said.

Amidst all these efforts, the hospital's psychologist will continuously monitor the mental health of the patients with an aim to avoid any untoward incident.

Bengaluru continues to report the highest number of Covid cases, recording 2,050 on Wednesday, raising the city tally to 36,993, out of which 27,969 are active.

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News Network
May 15,2020

Bengaluru, May 15: The novel coronavirus infection tally in Karnataka state on Friday crossed the 1,000-mark with 45 new positive cases.

The tally has risen to 1032 with 35 deaths.

At present, there are 520 active cases, while 476 have been discharged following recovery

A maximum of 16 new cases are from Dakshina Kannada, followed by 13 in Bengaluru Urban.

Five cases are from Udupi, three each from Hassan and Bidar, two from Chitradurga and one each from Bagalakote, Shivamoga and Kolara, respectively.

A three-year-old is among the six minor infected by the virus.

Among the new cases, nearly 20 have a travel history to Dubai, four to Mumbai, and three to Chennai.

The rest of the patients are contacts in the Containment zone and those who tested positive earlier.

Medical Education Minister Dr K Sudhakar said that there is no community transmission as yet.

New cases reported: 45

Total active cases: 520

Total discharges: 476

Total covid deaths: 35

Death of covid +ve patient due to Non-Covid cause: 1

Total positive cases: 1032

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News Network
January 12,2020

Bengaluru, Jan 12: Chief Justice of India, Sharad Arvind Bobde on Saturday hinted at the possibility of Artificial Intelligence being developed for the court system while making it clear that it will never replace human discretion.

Speaking at an event here, Bobde said, "We have a possibility of developing Artificial Intelligence for the court system. Only for the purpose of ensuring that the undue delay in justice is prevented."

"I must make it clear at the outset as there are times when even judges have asked this. AI is not going to replace human judges or human discretion", he added.

Sharing more details of his vision, he stated, "It is only the repetitive, mathematical and mechanical parts of the judgments for which help can be taken from the system...we are exploring the possibility of implementing it."

Bobde stressed on the requirement of developing AI for judiciary while outlining the number of pending cases in different courts.

"Some people are in jail for 10-15 years and we are not in position to deal with their appeals. The high court's and Supreme Court take so long and ultimately the courts feel that it is just to release them on bail", he said.

Bobde also endorsed employing every talent and skill to ensure delivery of justice in a reasonable time.

"We must employ every talent, every skill we possess to ensure that justice is received within reasonable time. Delay in justice can't be a reason for anybody to take law into their hands. But it's very important for us as courts to ensure there's no undue delay in justice", he said.

CJI Bobde also highlighted the need for pre-litigation mediation and said, "Pre-litigation mediation is the need of the hour especially in the backdrop of a significant pendency that the courts are tackling with. There are innumerable areas where pre-litigation mediation could solve the problem."

He also stressed that the position of a judge is very unique under the constitution and they have to deal with a variety of problems.

"The foundation of civilisation rests on the law. Judicial officers have to deal with a variety of problems...Judges without adequate knowledge, skills and experience may cause distortion, delay and miscarriage of justice", he said.

Earlier in the day, Chief Justice of India Bobde inaugurated the phase-1 of the new building of the Karnataka Judicial Academy on Crescent Road in Bengaluru.

The new building has three floors, besides, the ground floor and two basement floors.

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