BELEAGUERED hospital operator NMC Health yesterday said an investigation into its finances had uncovered evidence indicating suspected fraud in some of its previous financial activities.

NMC Health launched an external review into allegations over its finances after coming under attack from US shortseller Muddy Waters in December.

In an update to the stock exchange yesterday, NMC said the investigation had "discovered evidence leading to suspected fraudulent behaviour in relation to some elements of NMC's previous financial activities".

The company, which last month suspended trading in its shares, said it was "fully committed to investigating these activities" and had notified the relevant authorities in the UK and the UAE, where NMC is based.

NMC Health denied any wrongdoing in the wake of the short attack, and launched a review into the allegations led by former FBI director Louis Freeh.

Founder BR Shetty stepped down from the company's board last month following uncertainty over the size of his stake in the NMC, which has since fired its chief executive and placed its finance boss on extended sick leave.

Shares in FTSE 250 firm Finablr, also founded by Shetty, plunged 80 per cent to 4.5p on the news yesterday.

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