Civil Court Orders FENAKA to Settle MVR 7.9 Million Debt to LF Construction
The Civil Court has ordered FENAKA Corporation to pay MVR 7.9 million to LF Construction Private Limited within 15 days.
The ruling, issued on Wednesday, includes MVR 7.8 million in outstanding payments and MVR 40,000 in legal fees incurred by LF Construction to file the case.
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LF Construction had been contracted by the state-owned utility provider for multiple projects between 2019 and 2022. The company sued FENAKA after facing delays in payments for completed works and delivered goods. The projects included the construction of boundary walls for new office buildings in GA. Dhaandhoo and GA. Kanduhulhudhoo, the building of a new powerhouse in HDh. Finey, the installation of a day tank area, main tank, and chimney in HDh. Hirimaradhoo, and construction of new powerhouses in GA. Kondey and Th. Omadhoo. Several projects remain unfinished, including work on office buildings and powerhouses in HDh. Vaikaradhoo, L. Hithadhoo, N. Holhudhoo, and Sh. Maaungoodhoo.
The court ruled in absentia after FENAKA failed to respond to the claims within the allotted timeframe or provide evidence in its defence.
FENAKA, responsible for providing electricity and utility services across the Maldives, has faced persistent financial challenges. According to the current administration, which took office in 2023 under the People’s National Congress (PNC), FENAKA inherited a debt of MVR 4.3 billion. The financial crisis is attributed to years of mismanagement, with successive administrations significantly expanding the corporation’s workforce, further straining its resources.
Former Managing Director Mohamed Muaz Rasheed, who resigned earlier this week after a year in office, described the situation as “impossible”. Citing unsustainable debt, overstaffing, cash flow mismatches, and years of neglected maintenance, Muaz noted the lack of cooperation from relevant authorities to reform the organisation. He has been succeeded by Major (Retired) Mohamed Najah.
On Thursday, former FENAKA Managing Director Ahmed Saeed Mohamed and former Procurement Head Mariyam Dheena Solih were charged with corruption. The new leadership faces the daunting task of addressing FENAKA’s operational and financial woes while navigating the legal and reputational challenges arising from past administrations.
