Fenaka Corporation, the Maldives’ government-owned utilities company, is now facing parliamentary scrutiny in addition to the ongoing investigations by the Anti-Corruption Commission (ACC). With debts amounting to billions and allegations of corruption, Fenaka is facing a credibility crisis that puts its future operations in jeopardy.

On Wednesday, Parliament accepted a motion submitted by Adam Shareef, MP for the Maduvvari constituency and a member of the People’s National Congress (PNC), calling for urgent payments by Fenaka to smaller companies it owes money to. 

Shareef also urged for immediate management and financial audits of the company. Despite strong defence from government parliamentarians, the motion was passed unanimously with 53 votes and referred to the State-Owned Enterprises Committee for review.

Last month, contractors revealed that Fenaka owed over MVR 300 million in unpaid dues. Opposition MPs blamed the company’s failures for pushing several small businesses into bankruptcy. In their defence, government lawmakers argued that Fenaka had not made payments because funds owed to them had not been received, shifting some blame onto suppliers.

The ACC, meanwhile, has ordered the recovery of MVR 20 million from Fenaka in relation to 75 corruption cases, some of which date back to previous governments

Financial reports from the Privatisation and Corporatisation Board (PCB) reveal Fenaka ended last year with outstanding debts of MVR 2.22 billion. The company’s revenue and expenditure for 2022 stood at MVR 2.1 billion and MVR 2 billion, respectively. Notably, expenditures increased in areas such as staff training, accommodation, and meals, while the company reported a modest profit of MVR 15.6 million.