Former FENAKA MD Saeed Slams Audit Report, Denies Wrongdoing

Ahmed Saeed, the former managing director of state-owned utility provider FENAKA  Corporation, has rejected findings published by the Auditor General’s Office, claiming the special audit report is “incorrect” and that he was never summoned for questioning before its release.

Audit Findings

The audit report, made public on Thursday, revealed that between 2021 and 2023 FENAKA awarded the majority of its contracts without competitive bidding. According to the findings, projects worth MVR 2.2 billion were undertaken during this period, with MVR 1.3 billion granted without a public tendering process. Out of 673 contracts signed, 438 – about 65 per cent – bypassed open bidding and were awarded directly.

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The report also flagged procurement breaches, including purchases of generators, transformers and cables exceeding threshold limits without re-tendering, as well as profit margins of up to 55 per cent charged by suppliers. Other irregularities cited included MVR 12.1 million spent on property leases and renovations against regulations, fuel procurement worth MVR 127 million without contracts, and MVR 26.5 million of petty cash deposited into project managers’ personal accounts without records.

FENAKA was also found to have accumulated MVR 3.9 billion in debt by the end of 2023, while facing over 100 legal cases and MVR 330 million in unpaid settlements.

Allegations Against Saeed

The report revisited earlier concerns that Saeed had signed contracts worth MVR 49.8 million with three companies linked to his family, including Sheltera Holdings, Power Pay Investments and Coral Investments. It noted that these companies had collectively received over MVR 31 million by the end of 2018.

Separately, Saeed remains under investigation by the Anti-Corruption Commission (ACC) for alleged misappropriation of funds from an ice plant in L. Maamendhoo operated by Kaizan Investments. The ACC has confirmed six cases under review, with Saeed’s passport withheld as part of the inquiry.

Saeed’s Response

In a statement, Saeed denied wrongdoing, insisting that all procurement transactions during his tenure were carried out in line with the company’s rules and the board’s instructions. He stressed that no state funds had been used for personal gain and pledged to fully cooperate with any impartial investigation.

އޮޑިޓަރ ޖެނެރަލް އޮފީހުން ހަޤީޤަތް އޮޅުވާލާފައިވާ ފެނަކަ ކޯޕަރޭޝަން ލިމިޓެޑްގެ 2021 – 2023 ގެ ޚާއްސަ އޮޑިޓް ރިޕޯޓާ ގުޅޭ pic.twitter.com/ur4yIuwlPJ— Ahmed Saeed Mohamed (@myfoona) September 27, 2025

Saeed criticised the Auditor General’s Office for what he described as a “manipulated” report intended to serve a particular agenda, accusing it of misleading the public and eroding trust in independent institutions. He highlighted infrastructure improvements during his tenure, citing upgrades to ageing power plants and cable networks. During the MDP government, many power plants were modernised, new offices were built, and several projects remained under construction.

Broader Context

The audit further highlighted questionable allocations, such as catering services worth MVR 5.4 million awarded to a supervisor’s company, vehicle rentals amounting to MVR 18.9 million without bidding, and MVR 46 million spent on corporate social responsibility projects despite financial strain.

While Saeed has called for a fair review, the report’s findings have raised wider concerns about governance and procurement practices at FENAKA.