Audit uncovers MVR 14M overspent on Fenaka project meals; 6 meals a day

A special audit report released by the Auditor General's Office has revealed that Fenaka Corporation significantly overspent on meal expenses for contractors working on its projects between 2021 and 2023, with an additional MVR 14.2 million being used beyond the designated budget. The report highlights alleged financial irregularities within the state-owned company during this period.

The audit found that Fenaka outsourced catering services for temporary project employees across various islands. Under the agreements with contractors, employees were provided with a substantial six meals a day: breakfast, 09:00 tea-time, lunch, evening tea, dinner, and a late-night meal.

A key issue identified was Fenaka's inadequate record-keeping. The auditors faced challenges in obtaining documents detailing the number of employees for whom meals should have been provided. To compensate, attendance sheets were used to verify employee numbers. This revealed that some contractors were overpaid for meals, billing for more employees than were actually present for work in different months.

Significant Overbilling Examples:

• G.Dh. Gaddhoo Power Station Project: While the project's actual meal cost was MVR 4.14 million, the contractor was paid MVR 9.98 million, resulting in an additional expenditure of MVR 5.83 million.

• G.A. Villingili Project: The contractor for this project was paid MVR 5.45 million, an increase of MVR 1.95 million above the appropriate cost.

These findings come amidst previous allegations of widespread corruption within Fenaka during the previous MDP government, which reportedly went uninvestigated despite cases being filed with the Anti-Corruption Commission (ACC) and the then-majority MDP Parliament.

In response to such concerns, President Dr. Mohamed Muizzu has announced that the government will introduce an asset recovery bill to parliament at the start of the next session. The President emphasized that the bill's purpose is to facilitate investigations into major corruption and theft cases in the country, ensuring accountability for those involved.