Managing Director of Fenaka Corporation Limited Muaz Mohamed Rasheed has expressed confidence in the repayments of all debts of the corporation by the year 2027, provided the necessary concessions are granted.
Fenaka revealed that when the new management took over, the corporation's debts stood at USD279 million. As a result, Fenaka has faced substantial debt repayment costs, contributing to its deteriorating financial situation. The current administration is actively working to resolve these financial challenges.
Speaking to PSM News, Muaz criticised the previous management for hiring more staff than necessary, taking out high-interest loans, and accumulating outstanding bills related to fuel.
He emphasised that such poor decisions have led to the corporation's excessive expenditure. While Fenaka generates approximately USD13.8 million in revenue each month, it also faces additional monthly costs of about USD5.51 million.
Muaz also pointed out that Fenaka's financial difficulties cannot be overcome solely through its existing revenue. Although sewerage services are provided free of charge to residents, the operational costs for these services are high, he said adding the need for government subsidies to address this issue.
Additionally, Muaz revealed that support from the Ministry of Finance is necessary to restructure two loans, totalling USD25.9 million, which were taken by the previous management from the Maldives Islamic Bank (MIB).
He also highlighted the critical need for regular payment from government agencies and various state-owned enterprises (SOEs) for service provided by Fenaka. Muaz expressed optimism that with the implementation of these concessions, Fenaka would be able to clear all outstanding debt by 2027.