President Dr Mohamed Muizzu has announced plans to dissolve state utility provider Fenaka Corporation Limited and the Road Development Corporation (RDC), signalling a major restructuring of state-owned enterprises aimed at curbing systemic expenditure and operational redundancies.
Speaking at a press conference at the President’s Office, President Muizzu stated that technical experts advised his administration that continuing Fenaka’s independent operations was financially unsustainable. Consequently, the government plans to dissolve Fenaka entirely and transfer its utility responsibilities to the State Electric Company Limited (STELCO).
advertisement
advertisement
“Once this process is complete, STELCO will provide services across the entire Maldives,” President Muizzu said. “Therefore, all work currently undertaken by Fenaka will be transferred to STELCO, and Fenaka will be completely dissolved.”
Similarly, the administration intends to dismantle the RDC—the state body tasked with road construction—and integrate its portfolio into the Maldives Transport and Contracting Company (MTCC). President Muizzu cited excessive financial overlap as the primary driver behind the consolidation.
“There is significant duplication and very high expenditure,” President Muizzu noted. “Hence, we are bringing this change to deliver infrastructure work through an efficient system. RDC will be dissolved and merged with MTCC, increasing the government’s shareholding in MTCC, which will ultimately benefit the public.”
The President acknowledged that the restructuring process will include staff reductions to ensure the remaining entities operate with only essential personnel.
Both state-owned enterprises have faced persistent scrutiny over financial mismanagement and systemic irregularities. Fenaka Corporation, established in 2012 under former President Dr Mohamed Waheed to manage essential utility services across inhabited islands, has encountered ongoing allegations of corruption throughout its history. An Auditor General’s report detailing the previous administration of President Ibrahim Mohamed Solih cited extensive corruption within the entity, alleging that contracts were awarded to companies connected to senior political figures and sitting parliamentarians. Extreme overspending and heavy overstaffing ultimately left the enterprise near insolvency.
RDC has experienced a similar trajectory of financial distress. Founded under former President Abdulla Yameen to execute nationwide road construction projects, the entity accumulated substantial financial liabilities due to bloated payrolls and alleged procurement corruption spanning successive administrations. By merging these operations into STELCO and MTCC, the administration seeks to streamline public infrastructure delivery and stabilise the state’s financial exposure.
