Fenaka gave MVR 1.3 bn worth of work without tender process

The Fenaka Corporation gave MVR 2.2 billion to various companies for their services and goods from 2021 to 2023. Out of the MVR 2.2 billion, the Auditor General's (AG) Office has stated that MVR 1.3 billion was allocated without a tender process, which is against policy.

As per the special audit report that was published last night, 438 agreements out of the 673 that were signed by Fenaka had moved forward without a tender process. That totals to 65 percent of agreements.

The audit report states the agreements were made without any public announcements being made and ascertaining prices from just two or three parties. The corporation's direct purchase committee had also decided which parties would receive the work.

As per the report, if there are services and goods that go beyond MVR 225,000 excluding GST, a public tender is required. However, the rules were changed so that services and goods that were sourced internationally would be an exception.

The audit also revealed that the suppliers were given more money than was needed when the agreement was made for the international acquisition and supply of generators, cables and transformers. The audit report reads that the suppliers had charged Fenaka with a profit margin between 40 percent and 55 percent.

"With the use of a third party, Fenaka Corporation had an opportunity to reduce costs by MVR 287,130,996 when sourcing the goods internationally," as was written in the audit report.

The audit showed that Fenaka had gone against the rules with them having rented various places from islands for varied reasons. The buildings had been rented after acquiring just one price point, with Fenaka spending MVR 12.1 million on rent and repairs.

The Auditor General highlighted other instances where Fenaka had acted against the rules, with the AG submitting the investigation of the parties responsible and action to be taken against them.

During former President Ibrahim Mohamed Solih's administration, Ahmed Saeed was the Managing Director of Fenaka. The Anti-Corruption Commission had stated that he had facilitated acts of corruption while he was MD, with the commission bringing this information to President Solih in 2021.

Then-ACC President Mariyam Shiuna sent a letter to President Ibrahim Mohamed Solih, stating that while some cases against Fenaka had been investigated, others were in the process of being investigated. Among these, the letter said that "the commission's investigations have revealed that there is facilitation of acts of corruption within Fenaka Corporation."

However, the administration at the time had come to the end of its term without any action being taken against Fenaka regarding the corruption allegations.