Fenaka Owes MVR 1.4 Billion to Private Contractors

Fenaka Corporation, the state utility company, has acknowledged a debt of MVR 1.4 billion owed to numerous private contractors.

This revelation was made by Managing Director Ahmed Saeed during a press conference held yesterday.

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This massive debt came to public attention earlier this year when the company’s failure to remunerate private entities responsible for executing various projects led to protests in front of the Fenaka office. The issue also found its way to parliament, with Madduvari MP Adam Shareef submitting a resolution in April alleging a debt of more than MVR 2.8 billion.

However, this resolution was ultimately rejected by the parliament.

According to Saeed, delayed payments were primarily associated with bills facing issues. Additionally, he mentioned that some bills had remained unpaid for one to one and a half years, either due to issues or prolonged clearance processes.

Moreover, Saeed explained that varying payment periods were contracted with different companies, emphasising that these prolonged payment delays often led to potential legal actions or settlements.

Saeed further attributed the growth of Fenaka’s debt, a total of MVR 1.9 billion, to the incumbent administration. He argued that this rise was primarily due to pending infrastructure developments on islands neglected by previous governments.

The Managing Director remains optimistic about the future financial outlook, forecasting that a portion of the debt could be settled by the end of 2027.

Saeed also highlighted Fenaka’s increased income by 40% under the current administration. He stressed that the modernized facilities established by the company would ensure utility services for the next 40 years without requiring further investments by future governments.

Responding to concerns about politically motivated employment, Saeed disclosed that Fenaka currently employs 8,108 individuals, with the majority being permanent staff. He clarified that an increase in hiring was necessitated by the completion of water and sewerage projects on several islands, requiring additional manpower for operational purposes.

Moreover, he defended the necessity of the current workforce, particularly the requirement for shift duties at powerhouses and ice plants. Saeed noted that Fenaka boasts the largest workforce among all state-owned enterprises.