Fenaka Corporation Limited has affirmed that no employees have been terminated or recruited in violation of the hiring regulations. The statement comes in response to being called before the Performance of Government Accountability Committee regarding accusations of unlawful layoffs and recruitment.
Speaking to the committee, Managing Director of Fenaka Muaz Mohamed Rasheed said that no disciplinary action has been taken against any employee in breach of the regulations. He refuted claims suggesting mass layoffs shortly after a change in government, stating that 1,780 employees were released following the expiration of their contracts.
Additionally, Muaz explained that these employees were initially hired for project assignments. He, however, said that due to project delays during the previous administration, their roles were underutilised. He said that Fenaka had a workforce of 4,825 employees at the onset of 2023. Yet, he said that the previous government had added 2,105 new hires from the previous year until September, with an additional 122 employed between the two rounds of the last presidential election.
Furthermore, Muaz highlighted that most of the company's projects are internally managed. As such, he acknowledged significant oversights in project initiation, including the absence of project commencement estimates, incomplete staffing for power plants, and a lack of priority in project completion. He also said that 61 projects, encompassing office buildings and power plants, are currently suspended.
The monthly revenue of Fenaka stands at USD8.4 million. However, a substantial portion is allocated to debt repayment. The company is responsible for maintaining power plants across 153 islands, as well as managing water supply and sewerage systems within these island communities.