African Medical Invest (LON:AMEI), the AIM listed company that operates a portfolio of healthcare facilities in Africa, has terminated its management agreements relating to the Airport Medical & Travel Vaccination Centres at Johannesburg and Cape Town international airports. The move follows the initial findings of an ongoing investigation commissioned by the company’s board into financial and administrative irregularities at its Harare and Johannesburg medical facilities. In early July, the company parted ways with its chief executive Dr Vivek Solanki and said the initial indications were that it may have a claim against him which it intended to pursue aggressively.

AMI said the termination of the latest relationships would enable it to focus on the core business model of constructing and operating private hospitals with integrated Well Woman clinics. In line with this strategy, the company is now moving to consolidate its current portfolio, which includes the Dar es Salaam and Maputo private hospitals with integrated Well Woman clinics, and its Harare hospital which is currently under construction and scheduled for completion during the current financial year. Subsequently and where appropriate, the company said it would consider expanding its operations into other suitable locations across Africa.

In July, newly hired finance director Brett Winstone was appointed interim CEO during the period of investigation, while forensic accountants were brought in to assist with the investigation. On July 22 AMI made the fourth drawdown from its equity line agreement with Harbinger Capital, the company's largest shareholder. That deal took Harbinger's overall interest in the company to 43.56% and provided AMI with an additional US$2.42m. Harbinger is understood to be fully supportive of the company and its growth objectives.

AMI was set up by serial entrepreneur and former England cricketer Phil Edmonds and business partner Andrew Groves and joined AIM in June 2008. Shares in the company collapsed from around 22p to 12p in mid-July, when news of the criminal investigation first surfaced. They fell another 4.25% this morning to leave the company trading at 11.25p.

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