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Wed 29 Jan 2020 02:44 PM

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Dubai's Drake & Scull files new criminal complaints against former CEO

Contracting giant says it has filed new complaints against Khaldoun Tabari, family members and other former executive managers

Dubai's Drake & Scull files new criminal complaints against former CEO

Former Drake & Scull CEO and vice chairman Khaldoun Tabari.

Drake & Scull International (DSI) said on Wednesday it has filed new criminal complaints with the Abu Dhabi public funds prosecutor against its former CEO and vice chairman Khaldoun Tabari, family members and other former executive managers.

Responding to 15 prior criminal complaints filed by Dubai-based DSI, the prosecutor has charged Tabari for misappropriation, fraud, embezzlement, intentional damage to public funds, profiteering others and forgery, DSI said, without giving details of the new complaints.

The company added in a statement that it has been pursuing legal action against Tabari to get him extradited to the UAE following his arrest by Jordanian authorities at Queen Alia International Airport in Amman.

The arrest followed an International arrest warrant filed by UAE authorities against Tabari that resulted in an Interpol red notice issued January 7. DSI recently confirmed media reports regarding the arrest.

DSI said it has also filed a criminal case against Tabari and Zeina Tabari in Jordan.

DSI began reporting losses in 2015 after the decline in oil prices forced developers and clients to defer payments and delay projects. In 2018, it accused Tabari and former management of taking “deliberate and conscious” decisions to conceal millions in losses for the years 2009-2016. In November 2019, it said previous management hid around $817m in losses.

Last year, a report by the company said a 2016 restructuring plan was developed on “false information of backlog value, misrepresented projects' profitability and percentage of completion”. Tabari was the second biggest shareholder in the company before selling his stake to strategic shareholder Tabarak Investment in 2016.

DSI claimed Tabari and his daughter Zeina, also a former board director, owe the firm $272.3 million. Tabari hit back with a $1 million legal claim in DIFC Courts against the investment company, which he said breached an agreement to release him from any liabilities at DSI after the sale of the shares.

Following Tabari’s departure as CEO in 2016, DSI has replaced five chief executives and four chief financial officers. The company’s shares on the Dubai Financial Market (DFM) have been suspended since November 2018 and it has faced liquidation of operations in India and Oman and the forfeit of a subsidiary in Qatar.

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