Former Fenaka MD Saeed Sentenced to Four Years for Corruption

The Criminal Court has sentenced former Fenaka Corporation Managing Director Ahmed Saeed to four years in prison after finding him guilty of corruption linked to the awarding of funds to Blazon Inc.

Saeed was convicted of abusing his official position by disbursing funds to Blazon Inc. without verifying that the company had completed its contractual obligations. While the Attorney General’s Office requested the standard penalty of one year, seven months and six days, Chief Judge Adam Mohamed imposed the maximum sentence allowed under law.

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The judge noted that although this was Saeed’s first conviction, the decision to impose the maximum penalty was justified by the wider context of corruption in state-owned enterprises. He observed that misappropriation of public funds has become frequent and that punishments often fall short of what is warranted. He stressed that harsher sentences are necessary when senior officials foster environments conducive to further corruption.

The ruling also highlighted concerns over Fenaka’s leadership distributing significant amounts of money to individuals not formally contracted by the company.

Defence and Prosecution Arguments

During the trial, Saeed’s lawyers argued that the original agreement with Blazon, signed in January 2018 prior to Saeed’s appointment, obligated Fenaka to pay MVR 1.3 million for public relations services. They said that Saeed, on legal advice, later reached a settlement with the company, paying MVR 848,000 to avoid potentially larger financial losses had the agreement been terminated and contested in court.

The defence maintained that Fenaka’s legal team endorsed the settlement, and Saeed’s actions were supported by written proposals from Blazon. Witnesses, including Fenaka’s then legal head Ahmed Arif and staff member Amjad Ahmed, confirmed that legal advice aligned with Saeed’s decision.

Prosecutors countered that no evidence was presented to demonstrate Blazon’s fulfilment of the initial contract. They argued that the settlement agreement was unlawful and conferred an undue advantage on the company.

Alongside Saeed, former head of procurement Mariyam Dheena also faces corruption charges, though her case remains pending.

Audit Findings and Ongoing Allegations

The verdict follows the release of a special audit report by the Auditor General’s Office, which alleged extensive misconduct during Saeed’s tenure. The report claimed that between 2021 and 2023, Fenaka awarded contracts worth MVR 1.3 billion without public tendering, representing 65 percent of all projects in that period.

It also alleged that Saeed had awarded contracts worth MVR 49.8 million to companies linked to his family, with payments exceeding MVR 31 million by the end of 2018.

Saeed has rejected the findings, describing the audit as “incorrect” and stating that he was not questioned before its release. He has also denied all allegations of corruption.