Ernst & Young has resigned as the auditor of Travelex owner Finablr (FIN), over concerns about the company’s link to NMC Health (NMC), the composition of the board, corporate governance and its financial arrangements.
The payments group, whose shares were suspended earlier this month as it prepared for potential insolvency, also said that two of its directors have resigned. Abdulrahman Basaddiq and Bassam Hage stepped down with effect from the evening of Friday 27 March. EY had previously requested Mr Hage’s resignation.
Mr. Basaddiq was appointed at the request of the family of BR Shetty - who also founded NMC Health, which is facing an investigation by the Financial Conduct Authority over potential fraud. Mr Basaddiq said in a statement that he had no knowledge “concerning the matters which are the subject of an independent investigation, including the use of cheques, referred to in the company's announcement of 16 March 2020."
Finablr said that its board had attempted to address the auditor’s questions on its composition, including through these two resignations, but was “unable to accommodate EY's requirements in full in the time allowed to them”.
The announcement follows a downbeat trading update earlier this month, in which the company warned that travel restrictions were weighing on its liquidity, as well as its foreign exchange and payment services.
