Saeed was not alone in MVR 2.24 billion Fenaka corruption: Minister Adam Shareef

Local Government Minister Adam Shareef has said he does not believe that former Managing Director of Fenaka Corporation, Ahmed Saeed, acted alone in the embezzlement of MVR 2.24 billion during the last MDP government.

Following the release of the 2021–2023 special audit of Fenaka, numerous financial discrepancies have come to light, pointing to large-scale corruption within the company.

In a post on X, Minister Shareef said he had previously raised concerns about corruption under the MDP government, highlighting issues such as the looting of state funds, corruption within Fenaka, and the ventilator scandal, while serving as the MP for Maduvvari in the previous administration. However, he noted that neither the government nor the MDP-majority parliament at the time gave any attention to his concerns.

Minister Shareef said it is difficult to believe that Saeed alone was behind the embezzlement and called for a full investigation into the matter. He stressed that everyone involved must be held accountable and that the stolen funds must be recovered.

“MD Saeed alone cannot commit such huge thefts. It is now being revealed that there are many others involved in this,” Shareef said, referring to the findings in the audit report.

He added that it should be the responsibility of the state to properly investigate the case instead of placing the blame solely on one person. He called for a fair investigation of all parties involved and for the recovery of lost funds.

He urged the relevant authorities to carry out their responsibilities without turning a blind eye to corruption, stating that those responsible must be held accountable. He added that the country cannot be saved without eradicating corruption.

He also said institutions that have ignored corruption cases should be held accountable, reiterating that fighting corruption is the only way forward for the country.

According to the audit report, Fenaka’s debt increased to 379 percent by the end of 2023. This was not due to a lack of revenue, tariff losses, or insufficient government grants, but because of corrupt financial transactions linked to the company’s procurement of goods and services.

The report stated that by the end of 2023, Fenaka had multiple ongoing projects, including the construction of power plants and office buildings across various islands. When combined with project costs, incurred expenses, and pending payments for incomplete work, the total amounted to MVR 767.3 million, well above market value.

Additionally, procurement contracts for generators, cables, and transformers cost Fenaka MVR 287 million more than the actual market value, the report stated.

Out of the MVR 2.2 billion worth of work awarded to different parties, MVR 1.3 billion was awarded outside the legal framework and without a bidding process. The report also revealed that companies linked to Saeed’s family were awarded contracts worth MVR 49.7 million.

In 2021, the Anti-Corruption Commission (ACC) had already notified the President of corruption and suspicious activities at Fenaka during former President Ibrahim Mohamed Solih’s administration.

More recently, Ahmed Saeed was charged with corruption over the purchase of an ice plant from Kaizan Investment in L. Maamendhoo, among several other issues linked to Fenaka.