Fortis to appoint external agency to scrutinise internal controls
New Delhi: Fortis Healthcare has said it will appoint an external agency to undertake scrutiny of its internal controls and compliances after an investigation found systemic lapses in funds allegedly taken out of it by erstwhile promoters Singh brothers.
The company had in February this year decided to carry out an independent investigation through an external legal firm following allegations of siphoning off nearly Rs 500 crore by the founding family through inter-corporate loans (ICDs).
"With respect to the other matters identified in the Investigation Report, the Board will appoint an external agency of repute to undertake a scrutiny of the internal controls and compliance framework in order to strengthen processes and build a robust governance framework," Fortis Healthcare said in its Annual Report for 2017-18.
The company further said, "Towards this end, they will also evaluate internal organisational structure and reporting lines, the delegation of powers of the Board or any committee thereof, the roles of authorised representatives and terms of reference of executive committees and their functional role."
The investigation report was submitted to the re-constituted board of the company on June 8, 2018.