Dubai: In an overhaul of management positions, NMC Health CEO Prasanth Manghat has been dismissed from his post and will be replaced by current COO Michael Davis. According to a report by Bloomberg, the company’s CFO Prashanth Shenoy has also been sent on an indefinite leave.
Speaking to Bloomberg, sources said that Manghat’s dismissal came as a surprise. They said, “It was felt that the problems at NMC Health would be confined to its key shareholders, Dr. B R Shetty and the two UAE nationals. Prashant Manghat was having a brilliant tenure as CEO. NMC Health turned in its best financial performance in 2018. For him to be dismissed thus, it means there could be a wholesale change of the senior executive team as well.”
It can be recalled that the healthcare firm has been experiencing a tumultous period ever since NMC Founder B R Shetty announced that he was stepping down as Board Chairman.
Shetty’s decision came after an internal investigation into his shareholdings revealed financial discrepancies.
Commenting on the prevailing situation within the company, a senior official said, “NMC Health should come out with an official statement on the reasons behind Prashant’s dismissal – all stakeholders and the public will require answers.”
Furthermore, NMC Health also asked for its shares listed in London IPO to be temporarily suspended. In a statement, the company said, “NMC is focused on providing additional clarity to the market as to its financial position and to restoring its admission to trading. The company will continue to be bound by listing, transparency and disclosure rules.”
NMC Health Plc operates multiple hospitals in the UAE, both directly-owned and those that it acquired, such as Al Zahra. In 2018, it reported its best ever performance in terms of revenues and profit.
