State Electric Company Limited (STELCO) has signed a Memorandum of Understanding (MoU) to provide technical assistance to Fenaka Corporation Limited. The agreement was signed by Managing Director of STELCO Hussain Fahmy and Managing Director of Fenaka Muaz Mohamed Rasheed.
Speaking to the the media after the agreement signing, Fahmy expressed the commitment of STELCO to provide assistance in addressing the challenges faced by Fenaka. He emphasised that the services under the agreement are voluntary on the part of STELCO. He further outlined that the Fenaka staff will receive training in mechanical and electrical engineering.
Meanwhile, Muaz highlighted the professional development opportunities for Fenaka employees arising from the agreement. He underscored the positive impact of the collaboration on enhancing Fenaka's services.
Additionally, Muaz acknowledged the financial difficulties Fenaka is grappling with and stressed the collective effort needed from various companies to navigate the current situation. He pointed out that, unlike private contractors who serviced Fenaka machinery, STELCO would undertake the servicing under the agreement, leading to significant cost reductions for Fenaka.
The agreement is expected to alleviate financial burden of Fenaka and facilitate the company's debt repayment. Fenaka has faced financial challenges since the previous government, exacerbated by an excess of hired personnel beyond the company's operational needs.