NMC trustees initiate proceedings against Ernst & Young
A document said on Friday that the company that assumes administrative custody of "NMC Health" has taken initial steps towards filing a legal case against Ernst & Young, which is conducting the audit of "NMC", as it seeks to increase the amount of refunds to creditors Emirates Hospitals Group.
The restructuring company, Alvarez & Marsal, has run NMC Health since it came under administrative tutelage in April after months of turmoil over its finances.
Alvarez & Marsal said in a report on developments in the administrative guardianship process dated Nov. 6 that it is studying whether actions can be taken against individuals or third parties to increase recoveries.
Alvarez & Marsal said: "We had discussions and selected a lead consultant to advise us on possible actions and embarked on a legal process to bring a case against the auditors at Ernst & Young by issuing an initial notice of a potential suit."
Ernst & Young confirmed to Reuters that it had received initial notice of a possible suit from the guardians of NMC Health.
"It would not be appropriate to make further comments," she said.
NMC is the largest private sector health service provider in the UAE, operating more than 200 facilities, including hospitals, clinics and pharmacies.
Its collapse this year, which came amid allegations of fraud and the disclosure of hidden debts of more than $ 4 billion, caused bank losses and sparked court battles seeking to recover the debt.
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