News

"Fenaka pushed to near bankruptcy by prior gov't"

Fenaka Corporation Limited has revealed that the previous administration drove the company to the brink of bankruptcy, necessitating efforts to overcome the situation.

Speaking to PSM News, Managing Director of Fenaka Muaz Mohamed Rasheed, highlighted the neglect suffered by the company's machinery over an extended period, resulting in severe operational setbacks. He underscored the challenges faced in supplying electricity to the islands in the Maldives, citing the identification of 17 critically affected islands where the government is pursuing the acquisition of essential generator sets. He also disclosed plans to deliver approximately 40 generator sets to the islands in March.

Moreover, Muaz emphasised the previous administration's neglect of Fenaka, urging public awareness of the matter while acknowledging the complexities involved. He reiterated ongoing collaborative efforts with the current government to address the challenges. He previously noted that Fenaka accrued a debt of USD279 million under the previous government, despite generating a revenue of USD8 million, with USD6 million allocated to employee salaries for its workforce of 8,000.

Regarding the projects of Fenaka, Muaz disclosed that approximately USD65 million had been invested in 60 office construction projects, which have since stalled. Despite achieving 45% completion on some projects, he highlighted the need for substantial additional funding to recommence and complete the initiatives.