Dubai's DSI submits 'questionable' project files to UAE investigator
Emirates Securities and Commodities Authority provided 'some files related to questionable projects' between 2009-16
Drake & Scull International (DSI) said it has handed over files related to what the contractor has described as “questionable” projects between 2009 and 2016 to UAE regulator to the Emirates Securities and Commodities Authority (ESCA), which is currently investigating the contractor.
The Dubai Financial Market-listed (DFM) contractor said it had, following a general assembly meeting, “shed some light” on the ongoing legal proceedings by ESCA to investigate its finances – a move which DSI confirmed in a bourse missive on 6 May.
In its missive to DFM on 8 May, DSI added: “The company announced that [has] handed over some files related to questionable projects for the period 2009-2016 and they are currently under review.”
The contractor did not elaborate on what it means by “questionable”, although it confirmed that it would “continue to provide documents and files related to the business as per ESCA’s audit committee’s requirements”.
DSI added: “As for the legal complaints filed for offenses by members of the previous management during their tenure between 2009-2017, the company reiterated that these filed complaints are still under review by the federal public prosecutor.”
The news comes just two days after reports surfaced that ESCA was setting up a committee to go through DSI’s financial statements to determine the causes that led to the company’s present “dire situation”.
The contractor, which reported losses of $1.4bn (AED5bn) for 2018, has seen numerous changes to its executive board over the past six months.
Board chairman Obaid Khadim Bin Touq Al Marri and board member Khamis Buamim announced their resignation from DSI in a DFM missive on 7 May.
Reasons for their exits from the DSI board were not given at the time. Both have already been replaced by Fahem Alshehhi and Salem Alshamsi.
In its 7 May assembly meeting, DSI shareholders voted to increase the number of board seats from seven to nine.