FENAKA to Become STO Subsidiary Under New Gov’t Plan

President Dr Mohamed Muizzu has resolved to designate FENAKA Corporation Limited as a subsidiary of State Trading Organisation (STO) Public Limited. 

 The decision, made following a review of a proposal from the Finance Ministry during a Cabinet meeting, is set to be completed by the end of the year.

advertisement

advertisement

advertisement

advertisement

According to the President’s Office, the move aims to enhance the utility sector by improving the operational and financial efficiency of FENAKA, ensuring it delivers better services to the public.

STO will be granted the authority to amend its governing regulations and restructure FENAKA’s management to align with its own best practices. Additionally, STO will oversee business operations and implement effective practices. 

The transfer will also include determining staffing levels at STO in accordance with government policies, with efforts made to reassign employees rather than making redundancies.

To facilitate the transition, a committee comprising representatives from the Ministry of Finance, the Privatisation and Corporatisation Board, and STO will be established. This restructuring is part of a broader government initiative to consolidate companies and reduce expenditures while improving management efficiency.