Fenaka lowered board approval threshold to MVR 3 million to increase participation: Muaz

Fenaka Corporation Managing Director Muaz Mohamed Rasheed said that the decision to lower the threshold for board approval from MVR 5 million to MVR 3 million was made to increase the board's participation.

Speaking with Mihaaru News, Muaz addressed rumors on social media that suggested the board of directors needed to be consulted for transactions above MVR 250,000.

He said that while board approval was previously required for transactions exceeding MVR 5 million, the current management has decided to reduce this threshold to MVR 3 million. This means that any procurement of goods and services valued at MVR 3 million or above must now be submitted to the Fenaka Board for approval.

Despite this change, Muaz assured that the procurement committees would continue as before. He emphasized that the adjustment aims to ensure responsible procurement practices, especially in light of financial losses the company suffered due to past management's transactions conducted without proper board oversight, which created opportunities for corruption.

"Now we management have proposed to reduce a paper from MVR 5 million to MVR 3 million. This is a change to increase the involvement of the board. Some people are trying to discredit the company," Muaz said.

According to an internal memo issued by Fenaka on Wednesday, transactions between MVR 100,000 and MVR 250,000 will be approved by the Chief and Deputy Managing Directors overseeing the procurement department or by the person in charge of running the company.

The memo further specifies that transactions within the MVR 100,000 to MVR 250,000 range will require authorization from the Deputy Managing Director and the Managing Director, or the individual responsible for running the company. For transactions exceeding MVR 250,000 and up to MVR 3 million, approval will be required from the Managing Director or the person in charge of running the company.