Former Fenaka Management Exploited 60 Projects for Personal Gain, Says ACC

The Anti-Corruption Commission (ACC) has revealed that the former management of Fenaka Corporation allegedly exploited 60 projects handed over by the previous administration for personal gain.

The President of the Anti-Corruption Commission (ACC), Adam Shaamil made this statement during a meeting of the Parliamentary Committee on Independent Institutions.

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Shaamil reported that the ACC is currently investigating the specifics of these 60 projects, which are suspected to involve corrupt activities. He highlighted that preliminary findings indicate instances of unjust enrichment among the former management. The commission is delving into the financial records and bank transactions of those implicated.

The investigation has also uncovered instances where the company selectively hired individuals for project implementation during a specific period. Consequently, the ACC’s investigation is focusing on abuse of office for personal benefit, treachery, bribery, and unjust enrichment related to these projects.

Shaamil noted that the state suffered substantial financial losses due to these activities and revealed that USD 5,931 has been recovered so far. However, he did not disclose the total amount lost.

Fenaka Corporation has been identified as having the most cases of financial mismanagement and corruption during the previous administration. The current management asserts that the former management undertook pro bono projects for large banks and companies under the guise of corporate social responsibility. Additionally, projects were handed over at prices that did not cover the actual costs, leading to further financial strain.

Managing Director Muaz Mohamed Rasheed revealed that 25 out of the 60 projects were executed without a Bill of Quantities (BOQ) and without consideration for market prices, leading to significant debt for the company. As a result, Fenaka found itself unable to pay suppliers.

When the new administration took office in November 2023, Fenaka’s debt stood at USD 279.2 million. It is reported that the previous administration spent USD 64.9 million on the 60 projects now under scrutiny for personal gain.