SHORTSELLER Muddy Waters dealt a further blow to embattled NMC Health yesterday, saying the resignation of its chairman suggested "systemic rot and corruption" at the firm. NMC Health founder BR Shetty yesterday resigned as its non-executive chairman after stepping back from board discussions when questions were raised over his holdings in the embattled healthcare provider.

Chief investment officer Hani Buttikhi and board member Abdulrahman Basaddiq also resigned their roles. NMC said HJ Mark Tompkins, a British businessman, would continue as the company's sole chairman.

Responding to Shetty's departure, Muddy Waters founder Carson Block yesterday said: "We strongly suspect that today's resignations are due to more than misreported share ownership. We believe the share ownership and pledge debacle is a symptom of systemic rot and corruption at NMC."

NMC Health was plunged into turmoil in December when Muddy Waters published a report questioning its accounting and governance. NMC has denied all of the accusations.

Shetty's departure comes after NMC Health announced it was seeking urgent clarification from Shetty and other controlling shareholders over the size of their holdings.

UK financial regulators have launched an investigation, and NMC said it had launched a legal review.

Shetty and fellow board member Khalifa al-Muhairi were last week asked to step back from the company's board while their holdings were reviewed, and al-Muhairi resigned last Friday.

Tompkins said he "appreciated" the situation Basaddiq and Buttikhi had been put in following scrutiny.

(c) 2020 City A.M., source Newspaper