Ex-CEO, official of Drake & Scull must pay Dh151.9 million to company: Dubai court

Dubai: The former CEO and another ex-official of the Dubai engineering firm Drake & Scull International will have to pay Dh151.97 million to the company.

This is as damaged incurred by the company during their management period.

Dubai Court of Cassation has passed the judgement to this effect.

“This landmark ruling upholds the decision requiring Mr. Khaldoun Rashid Tabari, the former CEO of DSI, and Mr. Saleh Muradweij to jointly and severally compensate the Company with Dh151,979,857 for damages incurred,” said a statement.

“The judgment also includes a 5% annual interest from the date it becomes final until the full payment is made.”

This would be seen as a culmination of a long and arduous journey by the current management of DSI. While it was filing claims against Tabari and other ex-management, the company was in parallel fending off bankruptcy proceedings in Dubai courts.

And now, it can show a win on both counts. The company has been given time to work its way back into operational and financial strength, while the latest Dubai court decision gives it the platform to claim Dh151.9 million.

“DSI has already initiated enforcement actions to recover the awarded amount,” said the statement.

“The company has also secured attachments on the defendants’ assets, and additional measures have been implemented by the Abu Dhabi Public Funds Prosecution on the assets and funds of Mr. Khaldoun Rashid Tabari.”

Drake & Scull’s problems started with revelations in 2018 that the financial results were being fudged and that the actual losses were not given. At the time, accumulated losses were running at over Dh4 billion.

The company under a new management alleged that funds had been diverted, and that some of the overseas subsidiaries were nothing but shell companies. It filed cases against the ex-CEO and other officials in an attempt to recover the funds.

“This final judgment not only reaffirms DSI’s commitment to protecting its interests and shareholders' value but marks a turning point for the company,” said the Drake & Scull statement.

“With this matter resolved, DSI is eager to focus its efforts on strengthening operations, pursuing new projects, and delivering value to its shareholders.”

Just recently, the Dubai company confirmed it was exploring new project possibilities in Saudi Arabia and Egypt through a partner.