Drake & Scull International gives update on investigation into 2018 losses as new members join its board
Drake & Scull International on Wednesday announced the appointment of new board members following the resignation of chairman Obeid Bin Touq and Khamis Buamim as an investigation into the company continues.
Fahem Alshehhi and Salem Alshamsi have joined the board and shareholders also voted to increase the number of board seats from seven to nine, the company said in a statement.
The move comes as the Dubai-based contractor confirmed it is being investigated by a forensic audit committee formed by the UAE’s Securities and Commodities Authority.
The committee is investigating the reasons for "floundering financial position and accumulated losses”, referring to DSI’s $1.23 billion net loss in 2018, which rose significantly from a loss of $321 million in 2017.
The company claimed the losses include those that were sustained in 2009-16, but which were left unreported by previous management.
In Wednesday's statement, the company said it has handed over some files related to questionable projects between 2009 and 2016 to the audit committee and they are currently under review.
The company added that it will continue to provide additional documents related to the business as per ESCA's requirements.
Drake & Scull also said the federal public prosecutor is still reviewing 15 legal complaints filed alleging offences by members of the company's previous management.
The company also said it has started working with a banking committee and its consultants on a restructuring plan which could include measures such as the closure of branches and suubsidiaries.
In April, DSI terminated its group CEO Tawfiq Abu Soud after just four months at the company, as well as two other senior executives.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.