Ministry of Finance has said that although it had earlier been decided to transfer Fenaka Corporation under STO, a different option to resolve Fenaka's issues is being sought now.
Ministry of Finance has said that although it had earlier been decided to transfer Fenaka Corporation under STO, a different option to resolve Fenaka's issues is being sought now.
The Ministry said that they are looking at other options, such as merging Fenaka and STELCO. They maintain that a permanent solution can be found within the coming year.
Fenaka is the company that owes the highest debt to STO at the moment, with MVR 2 billion owed for fuel purchases.
In total, Fenaka's debt stands at MVR 4.1 billion.
Last August, the government announced that Fenaka's operations will be handed over to STO as a subsidiary from January 2025 onwards. An interim board was established for the meantime.
Fenaka is also the SOE with the highest number of employees at present. With over 7000 employees, the company spends about 13 percent of its revenue on salaries. In 2023, MVR 72 million was spent on salaries alone.
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