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NMC Health had an E&Y auditor. An amount of $ 4 billion was withdrawn from this company as a bank loan and its entry was not shown in the company’s books. This legal action is being taken on this basis
- NMC Health had an E&Y auditor. $ 4 billion was withdrawn from this company as a bank loan
- It is reported that there was also a former officer in the audit firm who later became a member of the NMC board
A company in Dubai is preparing to take legal action against Ernest & Young (E&Y). It is reported that NMC Health had an E&Y auditor. An amount of $ 4 billion was withdrawn from this company as a bank loan and its entry was not shown in the company’s books. On this basis, this legal action is being taken.
Notice of claim issued
The NMC Health Administrator has issued notice of a possible claim against E&Y in this case. Earlier, the UK regulator is also investigating against E&Y how it failed to account for billions of dollars of missing accounts. E&Y is also the auditor of the UAE Exchange Center. Initial claims filings against E&Y suggest that administrators will not take action only against those who have defrauded the company’s funds directly. Rather, they are angry with the NMC auditors who failed to systematically detect the disgusting game that has been going on for years.
Allegations against management in Abu Dhabi
Initial allegations have already been made against the former shareholders and management at NMC along with officials in Abu Dhabi. Prosecuting them and more importantly, recovering money will not be easy in any way. This is because most of the accused are no longer in the country.
Will take time and cost
The A&M report states that “our view is that it is not possible to accurately predict the timing and cost of investigations and legal claims, asset recovery strategy, potential recovery or claim strategy. It is likely that the investigation will take place in the future. And a claim recovery may take some time, as it will require significant resources.
Many are equally guilty
According to a senior banker associated with NMC, people who lead audit and financial reporting at NMC and work closely with E&Y are equally guilty. The audit firm also had a former officer who later became a member of the NMC board.
Search for missing money and people continues
On the one hand, the team of administrators is searching for missing funds and individuals involved, on the other hand it is devising a strategy that will focus on NMC. It will oversee non-core business and will also focus on its hospital and clinic network in the United Arab Emirates (UAE) and Oman.