Parliament Orders Fenaka to Address Staff Recruitment, Promotion Issues

The Parliament has directed Fenaka Corporation to address issues identified in a special audit report concerning staff recruitment, promotions, salaries and allowances.

The directive followed a vote on the floor yesterday after the Public Accounts Committee reviewed the Auditor General’s report covering Fenaka’s human resource practices between 2020 and 2023.

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The audit found that 5,289 employees were recruited by Fenaka over a five-year period and identified cases where promotions were granted contrary to regulations.

The Auditor General advised Fenaka not to recruit additional employees without first conducting a job analysis to assess operational needs, existing workloads and the number of staff required.

Following its review, the Public Accounts Committee submitted 12 recommendations, all of which Parliament approved with the votes of the 56 members present.

The committee called on Fenaka to provide an update within three months on its rightsizing efforts and changes in staff numbers. It also recommended that Fenaka amend its employee regulations to require public advertisements for vacancies and submit the amendments to the committee within three months.

The committee further called for revisions to Fenaka’s standard operating procedures and recommended that the Anti-Corruption Commission (ACC) investigate issues identified in the audit report.

The ACC was asked to provide an initial analysis within 30 days and monthly updates on its investigations.

The recommendations also call for the ACC and Maldives Police Service to investigate promotions granted in breach of regulations in 2022 and 2023, as well as the recruitment of employees under in-house projects who were allegedly paid substantial salaries.

The committee also recommended that Fenaka recover MVR 229,711 paid above the entitled salary and allowance amounts to employees recruited for in-house projects.

Fenaka Restructures Workforce Amid Staffing Scrutiny

The latest parliamentary action comes as Fenaka continues a workforce restructuring programme aimed at reducing staff costs. The company introduced a voluntary separation scheme in June offering employees who resign a lump-sum payment equivalent to four months’ salary.

Fenaka said on July 28 that 108 employees had submitted voluntary resignation requests under the programme and denied reports that it had misled employees over the scheme. The company said eligible employees who completed the resignation process received the approved four-month severance payment.

Fenaka said the remaining workforce would be determined according to organisational requirements and staffing needs, while the government planned to support departing employees in establishing private businesses.