Fenaka Aims to Settle MVR 3.2 Billion Debt Over the Next Two Years

Fenaka Corporation, in a press conference on Wednesday, outlined its strategy to settle a substantial debt of MVR 3.2 billion owed to various companies within the next two years.

During the briefing, Managing Director Muaz Mohamed Rasheed disclosed that the company is currently facing a total debt of MVR 4.16 billion, consisting of MVR 871 million in loans and MVR 3.2 million owed to external parties. Muaz attributed the significant increase in debt over the past five years to managerial negligence.

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Expressing regret for the financial situation, Muaz conveyed that Fenaka is engaged in discussions with the government to expedite debt resolution, seeking assistance in the process. He extended sincere apologies to the affected companies, emphasizing the company’s commitment to finding a swift resolution.

Fenaka asserted that effective management of cash flow could facilitate the repayment of owed funds within two years without the need for additional measures. The company further stated that faster debt repayment is possible through judicious expense management.

Fuel Supplies Maldives (FSM) holds the largest share of Fenaka’s debt at MVR 1.8 billion, forming the majority of the MVR 3.2 billion owed to external parties. Muaz highlighted the company’s top priority as seeking ways to settle debts, particularly with entities that Fenaka frequently engages for services.

Muaz discussed the company’s escalating salary expenses, noting a significant increase in the workforce from 2,700 employees at the end of 2018 to 8,100 employees at present. With a monthly expenditure of MVR 74 million on employee salaries, Muaz revealed cost-saving measures resulting in a reduction of MVR 5.3 million after 904 employees were released at the end of their contracts.

Amidst these financial challenges, Muaz faced allegations of wrongdoing during the transitional phase when Fenaka underwent a change in management.