Drake & Scull is yet to come up with turnaround plot
Image Credit: Supplied

Dubai: The problems for Drake & Scull International (DSI) have just gotten bigger.

The Emirates Securities and Commodities Authority (ESCA) is setting up a committee to go through the company’s financial statements and determine the causes that led to the present dire situation.

The committee will scrutinise decisions taken by the company’s board of directors, both past and present, the management, and the work of external auditors. It will also go through financial reports put out by the company and all information submitted to shareholders. This will cover both the period before and after 2017, which was when Tabarak Investment came on board as a strategic partner and pumped in Dh500 million as part of the restructuring. Another of the committee’s tasks will be to examine if DSI omitted revealing any facts.

The committee, whose members have expertise in financial and forensic audits, will submit the findings to the regulator for any follow-up action.

DSI had reported more than Dh5 billion in losses for 2018, which the company said included losses sustained in 2009-16 and which were left unreported by the previous management.

DSI has called for an annual general meeting on May 7, where it plans to discuss issuing a Dh450 million convertible sukuk.