Middle-eastern healthcare provider NMC Health listed on the London Stock Exchange in 2012. In December 2019, Muddy Waters released a report accusing NMC of fraud. The main allegations related to capex overspend via related parties, over-priced acquisitions (again via related parties), inflated cash balances, unusually high margins, undisclosed reverse factoring, undisclosed debt plus a number of corporate governance failings relating to the independent directors and auditors. NMC initiated an independent investigation later that month. In February 2020, NMC reported that it had failed to disclose share pledges which Muddy Waters interpreted as proof that debt had been understated. Later that month, the chairman and vice-chairman resigned. Shortly thereafter, the independent investigation reported that it had uncovered undisclosed supply chain financing facilities of US$335m while there were discrepancies in debt and cash balances. In March, the company disclosed that its debt position was closer to US$6.6bn, far higher than the US$2.1bn last reported in June 2019. In April 2020, administrators were appointed and NMC's listing was cancelled. It is a confirmed fraud.

Last updated November 2022

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