Parliament directs ACC, Police to probe Fenaka irregularities

Parliament on Monday approved a motion directing the Anti-Corruption Commission (ACC) and the Maldives Police Service to investigate the illegal promotions granted to employees of Fenaka Corporation during 2022 and 2023.

The People’s Majlis passed the Public Accounts Committee’s findings on the special audit report prepared by the Auditor General’s Office regarding Fenaka’s recruitment, promotions, salaries and allowances.

According to the audit, several employees received promotions in 2022 and 2023 in violation of Fenaka’s employee regulations. Parliament has now instructed the ACC, Police and other investigative bodies to probe the matter and identify those responsible for issuing unlawful promotions. The committee has been asked to submit monthly updates on the progress of the investigation until the matter is resolved.

The report recommends multiple measures to rightsize Fenaka. The company has been directed to determine staffing needs based on operational scale and workload, and to halt recruitment until a clear need for additional employees is established.

Fenaka has also been instructed to amend its employee regulations to prevent hiring without public announcement. The committee further directed the Human Resources Department to revise its standard operating procedures and ensure that recruitment only proceeds after screening, shortlisting and interviewing applicants.

The audit also flagged issues in Fenaka’s in-house construction of powerhouses and offices. Those responsible for planning and implementing these projects have been asked to be held accountable for salary and allowance expenditures related to project-based hires. Although the employees in charge at the time are no longer with the company, the case will be referred to the ACC and Police. Additionally, employees involved in in-house projects between 2021 and 2023 have been instructed to recover an excess payment of MVR 229,711, with monthly reporting to the committee.

The report noted irregularities in the payment of special allowances. Fenaka has been directed to maintain proper records of workdays and hours, and to issue allowances strictly based on verified time spent.

Fenaka must submit its amended regulations and SOPs to the Public Accounts Committee within three months, and revised allowance rules within 45 days. The Auditor General’s Office will conduct follow-up audits to assess the implementation of these reforms.

Fenaka faced allegations of corruption during the administration of former President Ibrahim Mohamed Solih. The audit found that several projects were awarded without bidding to companies owned by senior MDP leaders and MPs under various project categories.