Fenaka still unstable after two years, says MD Najah

Fenaka Corporation has yet to stabilize two years into the current administration, due to negligence and mismanagement under the previous government, Managing Director Mohamed Najah told the Parliamentary Committee on Environment and Climate Change on Monday.  

Najah said one of the biggest challenges inherited was that Fenaka’s procurement policy did not align with the guidelines of the Privatization and Corporatization Board (PCB), the parent body overseeing state-owned companies. He noted that revising the procurement framework is now the company’s top priority, with a new policy set to take effect from January 2026.  

He added that much of the equipment purchased under the former government was of poor quality, including rural water plants and generator parts. To ensure standards, Fenaka has now decided to source major equipment directly from original equipment manufacturers (OEMs).  

Najah also said the company is reviewing staff in its procurement division, with plans to transfer employees found to have violated rules and investigate whether staff are running private businesses. A new procurement committee will oversee all major purchases under the revised policy.  

The MD highlighted that the lack of documentation from the previous administration remains a major obstacle. “The documents are incomplete, the requester is unknown, or the request is unclear. We have to put these things in order, identify fake supplies, and clear payments tied to incomplete records,” Najah said.  

Fenaka has faced repeated allegations of corruption. A recent special audit report revealed serious irregularities, including:  

• MVR 1.4 billion in contracts awarded without bidding over three years  

• Used generators worth MVR 2 million purchased as new for MVR 17 million  

• Contracts awarded before work was officially sanctioned  

• MVR 105 million paid for transport to suppliers without vehicles  

• Work awarded to companies linked to former MD Ahmed Saeed’s family  

• No-bid contracts awarded to politically affiliated firms  

Former MD Ahmed Saeed was sentenced to four years in jail for corruption, though he and the MDP have claimed the charges were politically motivated. Former President Ibrahim Mohamed Solih and ex-Finance Minister Ibrahim Ameer have also acknowledged that scams were committed through Fenaka.  

Najah said Fenaka continues to recruit staff based on project needs, while working to restructure operations and restore compliance.