Parliament approves corruption inquiry into former Fenaka officials in Addu City

Parliament on Tuesday passed an order to conduct a separate investigation into allegations of corruption involving former senior officials and their family members who worked in the Addu City branch of Fenaka Corporation during the last three years of former President Ibrahim Mohamed Solih’s administration.

According to the 2021–2023 Special Audit Report on Fenaka branches and projects in Addu City, the company purchased goods using petty cash from businesses in which Fenaka employees had personal interests, during four projects carried out in the city.

The committee report stated that documents were forged and petty cash was withdrawn and deposited into the personal accounts of employees.

The report further noted that petty cash controls were weak, resulting in an additional MVR 36,494 being paid twice on the same bill.

At the same time, the audit found that materials worth MVR 783,296 were procured from businesses linked to employees, in violation of Fenaka’s procurement policies.

According to the report, services and materials procured through petty cash for the projects were not properly documented, transactions were made through employee-related businesses, and documents were forged. As a result, the committee said it is impossible to determine how much of the MVR 4.37 million spent on the projects through petty cash was actually used for services and materials at the sites.

Although a bank account and safe were maintained to manage funds of the Addu City branches, the report noted that project petty cash was deposited into the personal accounts of employees instead of being managed through these facilities.

The committee report also stated that items worth MVR 1.52 million required for Fenaka’s Addu City projects were obtained from a shop connected to a deputy director of the company. The report said this was believed to have been done with the intention of gaining an illegal advantage by preparing documents claiming that quotations were not received from other parties.

The Public Accounts Committee therefore identified allegations of money laundering by Fenaka employees and ordered the police to conduct a separate investigation into the accounts of senior officials and their family members who worked in Fenaka’s Addu City branches from 2021 to 2023.

The committee’s report was passed unanimously with 53 votes.