Fenaka: Can settle MVR 3.2 billion owed to companies in two years

Fenaka Corporation, on Wednesday, has stated they forecast to settle MVR 3.2 billion owed to other companies within the next two years.

At a press conference held on Wednesday, Fenaka unveiled the details of the company’s debt.

The company’s Managing Director Muaz Mohamed Rasheed said the company has MVR 871 million debt in loans and MVR 3.2 million debt owed to other parties – placing the total debt of the company at MVR 4.16 billion.

Muaz alleged that the company’s debt increased so much in the past five years due to the negligence of the management.

Underscoring that the company was in discussion with the government seeking ways to settle the debt as soon as possible – he said the company has sought assistance from the government on the matter.

“Our company is in huge debt. For this, we express our sincere apologies to companies,” he added.

Fenaka said if they can manage the company’s cash flow, they can repay the money owed to other companies within two years without an additional plan.

The company added that the debt could be repaid even faster if they could manage their expenses.

As per Fenaka, the company’s largest debt is to Fuel Supplies Maldives (FSM) at MVR 1.8 billion, making up the majority of its MVR 3.2 billion debt.

Muaz said the company’s highest priority at the moment is to seek ways to repay the debt owed to other parties, particularly companies that Fenaka frequently needs to acquire services from.

Speaking further, Muaz said the company’s expense on salaries of employees had significantly increased over the past five years due to extreme hike in the number of employees.

He noted that the company which had 2,700 employees at the end of 2018 now has 8,100 employees.

Therewith, he said MVR 74 million is incurred monthly on average to pay the salaries of the company’s employees.

“When we paid the salaries the last time, we incurred MVR 79 million. However, MVR 5,3 million was saved after 904 employees were let go following the expiration of their contracts,” he emphasized.

Muaz accused of wrongdoings on various fronts when Fenaka was handed over to the new management.