Minister Saeed Accuses MDP Govt of Deep-Rooted Corruption, Calls Fenaka Scandal ‘Just the Beginning’

Mohamed Saeed, Minister of Economic Development and Trade, has accused the former Maldivian Democratic Party (MDP) administration of orchestrating widespread corruption that, he claims, left the country’s finances in disrepair. At the centre of his allegations is a scandal involving Fenaka Corporation, the state-owned utility provider, which he described as symptomatic of a broader collapse in governance.

His remarks, delivered during an appearance on the ‘Raajje Miadhu’ programme on PSM News, followed the release of a special audit report by the Auditor General’s Office. The report concluded that billions of Rufiyaa had been embezzled from Fenaka. Minister Saeed said the misappropriation occurred with the full knowledge of senior officials in the previous government, some of whom allegedly benefited directly.

Among those named was former President Ibrahim Mohamed Solih. Minister Saeed claimed that President Solih had been formally informed of the corruption but failed to intervene. “The President of the Anti-Corruption Commission, who was nominated and approved by then-President Ibrahim Mohamed Solih, had formally brought to President Solih’s attention, that theft was taking place at Fenaka,” Minister Saeed said.

“The advice given was not to let the matter go,” he added. “President Solih cannot deny this today. In a similar instance, when a Deputy Managing Director [of Fenaka] provided this information in a letter, that individual was transferred to the President’s Office. This indicates that these events transpired with President Solih’s full knowledge.”

Minister Saeed described the alleged corruption as part of a broader pattern of economic mismanagement. He said that when the current administration assumed office, it inherited a network of bankrupt state-owned enterprises, including Fenaka. According to the minister, public resources were used to secure electoral victories, projects were launched at inflated prices, and major financial misconduct was carried out with the expectation of retaining power.

He pointed to the depletion of national reserves as evidence of the damage. “The one billion US dollar reserve accumulated by the PPM [Progressive Party of Maldives] government has been depleted,” Minister Saeed said.

“Even if we consider Fenaka alone, it was the combination of all these corrupt practices, the bankrupting of companies, the draining of the national reserve, the emptying of the SDF [Sovereign Development Fund], the debt monetisation and devaluation of the Rufiyaa, and the execution of numerous unsustainable, unbudgeted projects at inflated prices with non-existent funds, that completely entangled the entire system of governance,” he elaborated.

He concluded by underlining the need for accountability. Every instance of alleged corruption, he said, must be investigated, with appropriate action taken based on the findings. Minister Saeed assured the public that the administration of President Dr Mohamed Muizzu would not tolerate corruption and would respond decisively to any misconduct uncovered within the current government.