Resolution submitted on Fenaka debt after rejection of motion

A resolution was submitted to the Parliament on Monday calling for a financial audit of Fenaka Corporation and the formulation of a debt repayment plan after an earlier emergency motion on the same issue was rejected.

The resolution was submitted at Monday’s parliamentary sitting by Madduvari MP Adam Shareef Umar who had also submitted the emergency motion previously.

Like the emergency motion, the resolution states Fenaka owes over MVR 2.8 billion to small-scale suppliers in Male’ and other islands in conjunction with business transactions carried out. He stressed these businesses were facing financial difficulties due to the prolonged delay in payment, leaving them unable to pay their staff, leaving some of the businesses on the brink of bankruptcy.

He said that suppliers have repeatedly complained of lack of payment for their services.

MP Adam Shareef also underscored that some of the suppliers had resorted to staging demonstrations in front of the Fenaka headquarters, and that small and medium enterprises, along with the general public, had lost their faith in the company.

Therewith, he called for a management and financial audit of Fenaka to identify the reasons why the company racked up such a high debt and the people responsible, and the formulation of a debt repayment plan.

He also expressed belief that the businesses would face irrevocable losses should the government’s term conclude before Fenaka’s debt to them is settled.