The Chief Executive Officer (CEO) and Managing Director (MD) of the State Trading Organization (STO), Shimad Ibrahim, has been appointed Board Chair of Fenaka Corporation as the state-owned utilities enterprise transitions to an STO subsidiary.
Fenaka, the Ministry of Finance, and STO are working together on a roadmap that will see Fenaka fully transition to an STO subsidiary by January next year. This will include representatives of STO, the Finance Ministry, and the Environment Ministry taking up interim board positions at the utilities company during the transition.
As such, Ahmed Mazin, Minister of State for Finance, and Mohamed Nizam, STO’s Chief Financial Officer, have been appointed as non-executive directors at Fenaka.
Under the roadmap, an independent audit firm will assess the legal and financial status of Fenaka and determine the value of company assets, as STO’s board had directed the soon-to-be subsidiary to have its financial position evaluated and to work with the Finance Ministry to downsize while also strengthening operating procedures.
While the majority of Fenaka’s debt is owed to STO’s group of companies, STO has committed to a recovery plan and to making Fenaka a profitable company.
