Fenaka spent MVR 112 on crude oil without proper bid process

A total of MVR 112 million worth of crude oil was purchased by Fenaka Corporation without a proper bidding process or signed agreements from a company owned by former MP for Henveiru Dhekunu, Hussain Shaheem (An'dhun Hussain), according to the latest audit report released by Auditor General Hussain Niyazi.

The audit report, released late yesterday evening, covers Fenaka’s operations between 2021 and 2023, during the administration of former President Ibrahim Mohamed Solih.

The audit found that during this period, Sirius Enterprises Pvt Ltd., a company owned by Hussain, supplied MVR 112 million worth of crude oil to Fenaka. In total, Fenaka purchased MVR 127 million worth of crude oil over the three years, making Sirius Enterprises the overwhelming supplier.

Meanwhile, only a small portion of crude oil was purchased from the two state-owned companies that also import oil—STELCO and MTCC. According to the report, Fenaka bought MVR 15 million worth of oil from MTCC and just MVR 45,852 worth from STELCO during the same period.

The audit noted that Fenaka made these purchases on a day-to-day basis through individual purchase orders, bypassing its own procurement policy by not entering into formal agreements or opening a bidding process. The report warned that such practices could result in suppliers making undue profits and violated procurement regulations.

The audit also pointed to serious issues in how spare parts were procured, not just oil. Of the MVR 245.1 million spent on spare parts during the audit period, only MVR 700,000 was spent through proper procedures, including competitive bidding and required documentation. The rest, over MVR 244 million, was spent without following established protocols.

These findings in the audit report adds to the growing concerns over how Fenaka was run during the period. The Anti-Corruption Commission (ACC) had already raised red flags back in 2021, warning then-President Ibrahim Mohamed Solih about questionable practices taking place within the company.

At the time, ACC President Mariyam Shiuna sent a letter to President Solih outlining how several complaints and investigations had uncovered actions that facilitated corruption at Fenaka.

However, no substantial measures were taken by the end of the administration to address the allegations.