The UAE’s main financial regulator is reportedly setting up a committee to investigate the finances of Drake & Scull International (DSI), weeks after the Dubai-based loss-making contractor fired three of its most senior executives in April.
According to local daily Gulf News, the Emirates Securities and Commodities Authority (ESCA) will go through the company’s financial statements and determine the causes that led to the company’s present “dire situation”.
DSI confirmed this committee's formation and its planned activities in a missive to the Dubai bourse on 6 May.
The committee will reportedly scrutinise decisions taken by the firm’s management – past and present – and work with external auditors.
Financial reports released by the company and information submitted to shareholders will also be scrutinised.
Their investigation will also include 2017, the year that DSI announced a major capital restructuring exercise to take the business forward, and when Tabarak Investment injected $136m (AED500m) into the business, accelerating the investment house’s entry as a major strategic investor in DSI.
Gulf News said the committee – whose members have “expertise in financial and forensic audits – will submit findings to ESCA for any follow-up action.
DSI reported losses of $1.4bn (AED5bn) for 2018. It created a four member committee in October 2018 to manage the next phase of its restructuring efforts, the same month as its board agreed not to dissolve the business.
Two weeks ago saw its board of directors fire its chief executive officer, chief legal officer, and chief financial officer – the latest in a string of senior management reshuffles over the past 12 months.
Fired CEO Tawfiq Abu Soud had joined DSI this January, taking over the job from Yousef Al Mulla.