Fenaka former management suspected of major graft

Fenaka Corporation MD Muaz Mohamed Rasheed -- (Photo/ President's Office)

The Managing Director of Fenaka Corporation, Muaz Mohamed Rasheed has alleged the previous management of major graft, and said the matter will be filed with the Anti-Corruption Commission (ACC) for probe.

While speaking at a rally held in Baa atoll Kendhoo, as part of President Dr. Mohamed Muizzu's visit to Raa and Baa atolls, Fenaka MD alleged of gross misconduct and graft carried out during the previous management during former President Ibrahim Mohamed Solih's administration.

He said a total of 60 infrastructure development projects of Fenaka Corporation launched in the last five years have been put on halt. While 45% of these projects have been completed, Fenaka spent MVR 1 billion.

"So, the previous government and former management [of Fenaka] had executed a large-scale act of corruption," Muaz said.

Muaz further alleged several generator sets placed across the islands have been damaged due to the previous administration's negligence. He claimed 302 out of the 502 generators installed across Maldives have been damaged due to failure of regular maintenance.

"The public is aware of this, they can visit the powerhouse and inquire about this. This is the case in every island. If an island possess three gen-sets, two of those would be fully damaged. They were not maintained. No maintenance expenses were incurred in the past five years," he added.

Muaz also alleged that despite the previous government announcing an expenditure of MVR 100 million per annum on generator maintenance, this was not executed. He also alleged the previous government treated purchase of generators as a business.

He added that the government purchased 90 generator sets in 2022 alone, which he said did not improve the utility sector.

Transportation of assets had cost MVR 100 million in last five years, with MVR 117 million spent in 2023 alone.

Muaz also highlighted Fenaka employed 8,000 staff in the workforce, and incurred an estimate of MVR 86 in overhead expenditure per month out of the MVR 120 million revenue generated monthly.

The corporation held a total debt of MVR 4.3 billion when President Dr. Mohamed Muizzu assumed office, with MVR 2 billion out of this utilized in the purchase of diesel; payable to State Trading Organization (STO).

Muaz further revealed Fenaka did not pay money owed to STO since 2019.

While the utility provider faces bankruptcy, Muaz said suppliers have been pressuring the corporation to settle outstanding payments.

He revealed plans to settle all outstanding debt within the next two and a half years.