State-owned utility company Fenaka Corporation Limited’s Managing Director Muaz Mohamed Rasheed stepped down on Monday.
In his resignation letter sent to President Dr Mohamed Muizzu, Muaz insisted that he had strived to deliver uninterrupted services to the people with complete integrity and transparency despite numerous challenges facing the company.
Muaz said Fenaka has been forced to mould its operations in accordance with revenue, but the dire financial situation of the company has hindered such efforts.
Poor management and unnecessary staff recruitment in successive governments had compounded the company’s financial distress, with a debt of USD279 million when he assumed his position, the letter said.
However, Muaz cited lack of cooperation from relevant authorities to implement his efforts to downsize and bring the debt down to sustainable levels.
Despite the numerous challenges, Muaz pointed out that during his tenure, he had managed to shave off USD10.3 million from the company’s operational costs.
However, even such drastic cost-cutting measures would not be enough to save the company from its financial quagmire as operational costs remain significantly higher than revenue, he added.
Muaz further labelled the current financial situation of Fenaka as untenable and said it was no longer in a position to provide uninterrupted services to the people.
In the letter to the President, Muaz said he was stepping down from his post with immediate effect, as he does not see a way to steer the company out of its present crisis with him at the helm.