10/07/2018 07:31 AST

An internal probe by Drake & Scull International PJSC into alleged violations by the previous management has concluded that former chief executive officer Khaldoun Al Tabari and his daughter owe the contracting firm as much as Dh1 billion ($272.3 million), according to people with knowledge of the matter.

The amount exceeds the market value of the Dubai-based company, whose shares plunged about 70 per cent this year — the most among companies listed in Dubai.

Drake & Scull said last month that it had completed the probe and forwarded the report to authorities in the UAE. The central bank asked lenders to freeze accounts belonging to Al Tabari and his family, citing an order by Abu Dhabi’s public prosecutor, according to a June 4 circular seen by Bloomberg News.

Al Tabari could face charges if the UAE authorities decide to follow-up with their own investigation and reach similar conclusions, one of the people said. Bloomberg News contacted the former CEO several times for the story since Wednesday. He acknowledged the messages but didn’t comment. His daughter, Zeina Al Tabari, who also served as a senior executive, declined to comment.

Drake & Scull declined to comment, while the public prosecutor’s office didn’t immediately respond to questions. Al Tabari stepped down as CEO in October 2016 and later sold his stake in the company and resigned as a board member.

Drake & Scull has faced mounting losses since 2015 as contractors in the Gulf suffered from delayed government payments after the drop in oil prices. The company reported a loss of Dh1.18 billion ($321 million) in 2017. Last week, it appointed its fourth chief financial officer in three years.

Drake & Scull shares surged 11 per cent, the most in nine months, to 70.2 fils at the close in Dubai, giving the company a market value of Dh752 million. “Investors are using the news as a catalyst after the massive sell down of shares,” said Nabil Al Rantisi, managing director at Daman Investments in Dubai. “Recovery of this amount won’t be easy and may not happen at all.”

Gulf News

DSI confirms Tabarak remains ‘strategic investor’


Drake and Scull International (DSI) said on Monday that Tabarak Investment’s stake in it is at 13.26 per cent, and that Tabarak “will continue to be a strategic investor.”

DSI said in a sta

Gulf News

Drake & Scull confirms financial violations by previous management


Dubai contractor Drake & Scull International said its former management was involved in “material” financial violations that are currently under investigation by the designated UAE authorities.

The National

DSI share prices dive 10% — again


Drake and Scull’s (DSI) share prices plunged 10 per cent, the maximum permissible drop on a stock, on Wednesday for the third day in a row, bringing its year-to-date decline to around 68 per cent.

Gulf News

Ticker Price Volume
RIBL 16.64 833,203
DSI Sector Market
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
EMAAR 5.10 -0.02 (-0.40%)
EMAARMALLS 2.05 0.00 (0.00%)
EMAARDEV 5.25 0.10 (1.94%)
DAMAC 2.16 -0.01 (-0.47%)
UPP 0.70 -0.01 (-1.00%)
Bahrain's Investcorp records $165m loss for 2019-20 financial year


Bahrain’s Investcorp slipped into a $165 million loss for the 12 months ended June 30, against profits of $131 million a year ago.

The COVID-19 played its part in the loss, as fee income c

Gulf News

Aramex's revenue surges 4pc to $359m in Q2


Aramex, a leading provider of logistics and transportation solutions, has registered a 4 per cent growth in its revenues for the second quarter which surged to hit AED1.32 billion ($359 million), com

Trade Arabia

Abu Dhabi's Waha Capital trims first-half 2020 attributable losses to Dh27.2m


Abu Dhabi based investment company Waha Capital recorded a net loss of Dh27.2 million - attributable to shareholders - for the first six months of 2020, an improvement on the Dh124.38 million it rec

Gulf News

FAB issues Formosa bond globally


First Abu Dhabi Bank (FAB), recently announced the issuance of the largest-ever Chinese Yuan (CNH) denominated dual-listed Formosa bond globally, with a CNH 3.25 billion five-year issuance.

The Gulf Today

Etisalat to pay out Q2 interim dividends from August 11


UAE's leading telecom services operator Etisalat Group has announced that the interim dividend of 15 fils per share for the second quarter will be paid out starting from August 11 through the First A

Trade Arabia