Fenaka: Implementing corrective measures and legal compliance after audit

Fenaka Corporation, a state-owned utility company, announced on Tuesday evening that it is now operating in full compliance with Maldivian laws.

This follows a special audit that investigated several alleged scandals spanning the last three years of the Maldivian Democratic Party (MDP) regime.

In a statement, Fenaka detailed its remedial measures, emphasizing the implementation of an additional monitoring system to oversee the progress of its goods and services policies and operations. This system aims to ensure all management activities adhere to established rules and regulations.

Furthermore, the company committed to identifying and pursuing initiatives to strengthen its governance structure, enhance stakeholder communication, and improve reporting and information disclosure mechanisms.

Fenaka also stressed the importance of taking appropriate legal action against individuals found guilty of violating laws, regulations, or neglecting job responsibilities, as highlighted in the audit report. "The cases of such persons will be referred to the relevant state agencies," the statement confirmed.

The audit report uncovered several serious irregularities, including:

• MVR 1.4 billion in procurement contracts awarded without a competitive bidding process.

• Procurement of refurbished generator sets for MVR 17.4 million, which were passed off as new, despite an actual value of MVR 2.9 million.

• Equipment procurement before contracts were officially signed.

• MVR 105 million in delivery contracts awarded to a supplier lacking a ship for transportation.

• Contracts awarded to companies linked to the family of Mohamed Saeed Ahmed, the former Managing Director.

• Multiple no-bid contracts awarded to companies associated with the MDP.

In connection with these findings, Mohamed Saeed Ahmed, who served as Fenaka's Managing Director during the MDP government, has been sentenced by the Criminal Court to four years in jail on corruption charges.