State-owned utility Fenaka Corporation, which is grappling with significant debt, is currently undergoing an internal audit to evaluate its present financial standing, Managing Director Muaz Mohamed Rasheed has revealed.
Allegations of massive corruption and mismanagement at Fenaka surfaced during the presidential election in September, which prompted the new management to launch an internal audit.
Speaking to local media, Rasheed stated that the company is overstaffed, and initial assessments have revealed significant violations of the company’s procurement rules.
“They have procured goods at high prices and against the company’s procurement rules. There are companies that have been given big business deals at low prices. We will review if these companies are capable. We are reviewing all contracts [made by the previous management],” Rasheed explained.
The ongoing audit will be completed within the next two months and the findings will be shared with the relevant authorities, he said.
The company is carrying a huge debt burden and has to spend MVR 79 million on employee salaries alone. In addition, Fenaka had taken on projects for banks and other companies for free as part of their CSR. Various government ministries have awarded projects to the company at unrealistically low prices, the current management confirmed. The Environment Protection Agency (EPA) has also fined Fenaka MVR 4.2 million last month for violating EIA reports under the power plant development projects in 21 islands, ordering the company to pay the amount within a month.
