Managing Director of Fenaka Corporation Limited Muaz Mohamed Rasheed has confirmed that Fenaka will no longer engage in or take over any unprofitable projects in the future. This decision comes in response to the financial instability and deteriorating financial condition of the corporation, largely due to unprofitable projects undertaken by the previous administration.
Muaz stated that the financial situation of Fenaka deteriorated significantly due to poor policies and decisions made by the previous management. The company disclosed that it had halted a number of projects initiated by the previous government upon the current administration taking authority, revealing that Fenaka had accrued a debt of USD 259 million.
Speaking on a program on PSM News, Muaz outlined his vision for stabilizing and standardizing the operations and policies of the company. He emphasized that the previous management did not prioritize Fenaka's profitability, leading to the accumulation of debt. Muaz affirmed that the current management is committed to changing the company's direction towards profitability and ensuring that no unprofitable projects will be undertaken by Fenaka in the future.
Muaz highlighted the significant obstacle Fenaka faces in recovering from its financial situation, which is the large amount of debt incurred in recent years. He revealed ongoing government preparations to finalize a plan to repay the debt and efforts to draw up a business plan to ensure that Fenaka becomes a revenue-generating firm within the next five years. The business plan will outline the types of projects or commercial activities in which the company will be involved and aims to minimize unnecessary expenses.
Furthermore, Muaz stressed the losses incurred by Fenaka's ice plant and stated that efforts are underway to abolish unprofitable projects from the company's contracts. Fenaka previously revealed that its debt amounted to USD 279 million when the current administration took over. Despite generating a monthly revenue of USD 7.8 million, the company incurs a monthly salary expense of USD 5.6 million for its 8000 employees.