Number of Fenaka employees who applied for voluntary redundancy rise to 108

A total of 108 employees have applied for voluntary redundancy as part of Fenaka Corporation's workforce restructuring efforts, says the Corporation’s Managing Director Mohamed Afeef Hussain.

Speaking on a program aired by the national radio station Dhivehi Raajjeyge Adu, Afeef stated that while 97 employees initially applied for voluntary redundancy, additional staff members later expressed interest in the scheme. Accordingly, the Corporation is currently processing the resignation of all 108 employees.

He stated that retaining employees on the payroll without assigning them productive work is not beneficial to the islands. He explained that employees leaving the company would have the opportunity to pursue alternative livelihoods through a loan scheme facilitated by Finance Ministry.

Afeef further noted that the company's current revenue is insufficient to meet the salary costs of its approximately 8,000 employees. He added that the compensation packages for employees opting for voluntary resignation are being financed from within the company's existing budget.

“[The redundancy package] is provided from the budget. For instance, there are six months between July and December. If we release them with a four-month pay settlement, we save two months of salary expenditure. This is how it becomes financially beneficial for the company," he explained.

Fenaka has previously stated that the initiative is a key step towards strengthening the company's management and expanding the services it provides to the public. The corporation has described the workforce reduction as an essential measure in its efforts to transform Fenaka into a financially sustainable enterprise.

The company also stated that a considerable number of employees across various islands have remained underutilized due to a lack of equipment and materials needed to carry out certain projects. Fenaka expects the restructuring to improve productivity and enhance the quality of its services.

Employees who choose voluntary redundancy will receive a compensation package equivalent to four months' salary. Fenaka has identified the initiative as the first phase of its broader corporate reform programme.

Fenaka remains one of the state-owned enterprises most frequently associated with allegations of corruption. In particular, successive governments have faced criticism for significantly expanding the company's workforce during election periods.