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Medical Staffing Company Investigates Its Own Financial Statements

Posted on: Wednesday, 24 August 2005, 21:00 CDT

Aug. 24--Three days after the unexpected resignation of its president and chief executive officer, medical staffing company World Health Alternatives Inc. began an investigation into its financial statements, among other things.

The company, which has offices in Nashua, is investigating issues that include, but may not be limited to, discrepancies in the amount of the company's outstanding shares, financial statements associated with the company's preferred stock, the underpayment of more than $4 million in tax liabilities and irregular reports to the company's lenders that resulted in excess of $6.5 million.

The company is also looking into other issues concerning possible breaches of existing financing documents.

World Health Alternatives' former CEO, Richard McDonald, stepped down Aug. 16 citing family and medical reasons.

"It is very unfortunate to have discovered that we have to deal with these issues, but management and the board are working diligently to resolve them," said John Sercu, the interim CEO, in a prepared statement. "The company continues to make staffing placements of its medical and other professionals on a daily basis with its clients, and we look forward to continuing our business into the future."

The company has retained outside counsel, and the board of directors has retained special counsel to investigate the discrepancies.

Since the company's stock is traded on the OTC Bulletin Board, the company does not have the authority to suspend trading of its stock.

World Health has also stopped working with Daszkal Bolton LLP, its outside auditing firm, and will begin a search for a new auditing firm.

It is expected that the company's prior financial reports will be restated, and it is actively working with its investment banking and funding sources to raise capital to meet its short-term cash obligations.

The company is headquartered in Pittsburgh.

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Copyright (c) 2005, The Telegraph, Nashua, N.H.

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WHAI,

Source: The Telegraph

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