A damning special audit report released by the Auditor General's Office (AGO) has exposed arguably the largest case of stolen funds through a state-owned firm in Maldives’ history.
The report targets the public utilities firm, Fenaka Corporation during the tenure of the previous Maldivian Democratic Party (MDP) government, headed by former President Ibrahim Mohamed Solih, which has blown the lid on staggering embezzlement of over USD143 million.
The comprehensive audit, which has sent shockwaves through the nation, details a pattern of alleged financial irregularities and misappropriation of public funds. According to the Auditor General's findings, the previous administration is accused of circumventing proper procurement procedures, with a significant number of 674 project agreements reportedly awarded without open bidding.
Specific areas highlighted by the audit include substantial sums allegedly diverted for the purchase of crucial infrastructure components. The report points to USD 51.2 million spent on electricity cables, USD 35.8 million for power generator sets, and USD 25.7 million on transformers, along with a further USD 32.2 million reportedly embezzeled through water and sewerage projects.
Citing information from the Auditor General's report, a government official on condition of annonimity stated that the scale of the alleged Fenaka fraud, at USD 143 million, surpasses notorious past scandals such as the 1990 FPID and the 2015 MMPRC scams in terms of the sheer volume of embezzeled funds.
The official further suggested that the total extent of theft and fraud committed by the MDP government between 2018 and 2023 could potentially be larger than any other exposed in the past century.
In response to the gravity of the findings, independent state agencies, including the Anti-Corruption Commission (ACC), have reportedly launched their own investigations into the massive theft. Some cases are understood to have already been forwarded to the courts for prosecution, with measures such as travel bans being enforced against individuals implicated.
Among those facing scrutiny is Mohamed Saeed, former Managing Director of Fenaka and reportedly a close associate of former President Solih. The revelations are expected to fuel further public discourse and calls for accountability regarding the management of state resources.