Concerning irregularities in Fenaka’s administrative and financial operations

President Ibrahim Mohamed Solih opening the new powerhouse in GA. Nilandhoo, accompanied by Fenaka Managing Director Ahmed Saeed. (Photo/President's Office)

Office of the President Elect, on Thursday, has underscored having taken note significantly concerning irregulates in the administrative and financial operations of state utility company Fenaka Corporation.

At a press conference on Thursday, the Spokesperson of the Office of the President Elect, Firuzul Abdulla Khaleel briefed the media on issues the office had taken note of with respect to utility companies.

Fenaka’s financial standings as per the inquiry of the Office of the President Elect

  • Total debt of 2022: MVR 4.1 billion
  • Unpaid amounts to various suppliers: MVR 3.2 million
  • Unsettled loans: MVR 901 million
  • Unsettled bills, that have been unpaid: MVR 958 million
  • Number of venders with unsettled bills: 1,149
  • Number of staff 2018: 2,756
  • Number of staff at present: 8,126
  • Monthly salaries of staff 2018: MVR 23 million
  • Monthly salaries of staff at present: MVR 82 million

Despite the increase in staff, Firuzul stressed Fenaka had shown no improvement in efficiency in executing its work.

Underscoring the availability of easements for tasks such as preparing bills for households at present – he noted the necessary changes have not been implemented to the process to reap the benefits.

Firuzul also pointed out an unusual increase in the number of employees employed; 747 from March this year, till present.

In this regard, he said the quarterly report publicized by Privatization and Corporatization Board (PCB) for the first quarter of the year, meaning till the end of March, showed the company’s employees stood at somewhere 7,000.

Speaking further, Firuzul attributed the high debt of Fenaka to the passage of deficit budgets.

He detailed MVR 960 million was approved as deficit in this year’s budget, without detailing comprehensive policies on how to finance the deficit.

“In the administrative and financial operations of the company, we have also noted that the company did not maintain the policies they must adhere to when passing the budget,” he said.

The spokesperson also briefed the press on the financial standings State Electric Company Limited (STELCO, Waste Management Corporation (WAMCO) and Male’ Water and Sewerage Company (MWSC). However, he emphasized it was not with the intention of complaining, but as the office believed it to be important.

Firuzul said the new administration’s primary works will include eliminating the debt.  

The issue of rising Fenaka’s debt is not a new topic, but one that has been contentious throughout years.