Drake & Scull's alleged 'violations' passed to UAE authorities
Alleged violations of Drake & Scull's former management team have been passed to UAE officials for "legal proceedings", the contractor revealed
Construction firm Drake & Scull International (DSI) said it has passed alleged "violations" of its former management team to UAE officials for "legal proceedings".
DSI shareholders asked the company's investigative committee to open a probe into the practices of the company's previous management team, although it did not name names.
The committee assigned by the board of directors to carry out the investigation has since completed its review, and "delivered all the violations of the previous management" to UAE officials, DSI said in a disclosure on the Dubai Financial Market.
The company said the information had been passed to allow UAE authorities "to proceed with the legal proceedings".
DSI did not say what the alleged violations of its former management team were. However, it said it would keep shareholders informed of any developments.
The contractor has had an eventful year following a corporate overhaul that led to a management shake-up, and the subsequent appointment of new chief executive officer, Dr Fadi Feghali.
These changes appear to have had the desired effect, though, with DSI posting profit growth of $1.9m (AED7m) for Q1 2018, swinging from a net loss of $228m (AED839m) year-on-year.
DSI said "positive momentum" triggered its swing from red to black, as it unlocked extra value in key segments that had been affected by the impact of legacy issues.
The company said its total project backlog was worth $1.4bn (AED5.4bn), supported by $83m (AED305m) worth of projects that had been secured since January 2018.