Managing Director of Fenaka Corporation Limited Muaz Mohamed Rasheed has announced the corporation has paid off USD 51 million of its outstanding debts. At the time the current government assumed office, Fenaka had a total debt of USD 278.9 million, primarily owed to the State Electric Company Limited (STELCO) and various private enterprises.
In an interview with PSM News, Muaz revealed that the debt payments prioritised small and medium enterprises (SMEs), with dues settled for over 280 parties. Despite these efforts, the remaining debt stands at USD 265.9 million, largely due to significant obligations to STELCO. Muaz anticipates that Fenaka will complete all outstanding payments by 2027.
Additionally, President Dr. Mohamed Muizzu has directed State Trading Organization (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 set 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 Fenaka’s assets, and implement restructuring plans with guidance from the Ministry of Finance.
STO’s takeover aims to enhance Fenaka’s management and continue profitable projects contracted to the corporation. Muaz noted that this change is expected to significantly reduce oil import expenses and improve overall management, while Fenaka will continue to provide efficient services to residents.