Managing Director of the State Trading Organisation (STO) Shimad Ibrahim has highlighted the transfer of Fenaka Corporation Limited to STO as a crucial investment in the company's future. He made the statement while speaking at a press conference to discuss the government's decision to move Fenaka under the ownership of STO.
Speaking at the press conference, Shimad emphasised that STO plans to address the debts of Fenaka and aims to make the company profitable in the long term. He noted that this transfer is a strategic move for STO to enter the renewable energy sector and that STO plans to strengthen its operations and implement significant changes. He also said that STO will continue with projects that offer sustainable benefits.
Meanwhile, Managing Director of Fenaka Muaz Mohamed Rasheed said that the change would reduce fuel costs and enhance operations. He also assured that services will remain uninterrupted and highlighted that with the extensive governance experience of STO, the quality of service will improve.
President Dr. Mohamed Muizzu has directed STO to acquire all shares of Fenaka and integrate it as a subsidiary by the end of this year. This transition process is underway, with Fenaka scheduled to operate under STO from January next year, following an independent audit to assess its condition. During this period, STO will conduct financial and legal due diligence, evaluate the company's assets, and restructure Fenaka with guidance from the Ministry of Finance. Fenaka, previously the most financially troubled state-owned enterprise (SOE), has a debt of USD 290 million, primarily owed to STO.