Arabtec pursuing cases against former management, says chairman
The Arabtec Holding chairman Mohamed Al Rumaithi said that the company had instigated legal proceedings against former members of the company’s management team who have been accused of misappropriating company funds.
“Everyone working in senior management and middle management who did not do their duties for the sake of Arabtec will be in court,” Mr Al Rumaithi told shareholders at the company’s annual general meeting on Tuesday.
He did not name any individuals, nor the sums involved.
“I don’t have figures. Just trust us. Be sure that we will ask for your rights,” he said.
At the meeting shareholders approved a Dh1.5 billion rights issue, part of a recapitalisation plan, through which the company will extinguish Dh4.6bn in accumulated losses.
Mr Al Rumaithi said that since he had been appointed as chairman in May 2015, all of its major projects have been loss making.
“There is no project that we took which has been making profits. The previous reports [accounts] were wrong. We set up a committee and we visited all of these projects to make sure that everything is correct,” he said.
He added that the recapitalisation plan was the best way forward for the business.
“The easiest thing was for us to close it. But we are trying to make profitability. We care about the shareholders. Not only the main ones,” he said.
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