FENAKA Reveals a Debt of MVR 4.1 Billion and Employee Surge

The FENAKA Corporation Limited currently holds a debt of MVR 4.1 billion, according to a statement provided by the President-elect’s spokesman, Mohamed Firuzul.

Firuzul informed the press that the data gathered by Transitional Committees, reveal that the FENAKA Corporation’s debt comprises MVR 3.2 billion owed to suppliers and contractors involved in various projects, with an additional MVR 901 million in direct loan payments.

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Firuzul also disclosed that FENAKA has outstanding dues to 1,149 companies. The financial report not only focused on the indebtedness but also outlined shifts in the company’s workforce. 

It was disclosed that in 2018, FENAKA employed 2,756 individuals. However, the workforce has swelled, currently standing at 8,126 employees. Firuzul highlighted a substantial surge of 747 new employees hired since the commencement of this year’s first quarter.

The monetary repercussions of this employee expansion were emphasised by Firuzul, stating that the salary expenses have also escalated. 

In 2018, FENAKA’s monthly salary outlay was MVR 23 million, which has surged to MVR 82 million per month.

Moreover, the financial situation of the corporation was detailed, highlighting a deficit budget of MVR 1.6 billion from the previous year and a projected debt budget of MVR 960 million for the ongoing year. 

Firuzul expressed concern about the corporation’s approach to handling the mounting debt, citing a reliance on loans to address the issue instead of establishing a robust financial framework.