MDP claims Auditor General’s report on Fenaka Corruption was issued for political purposes

The Maldivian Democratic Party (MDP) has accused Auditor General Hussain Niyazi of releasing a politically motivated report on corruption scandals within Fenaka Corporation during the party’s administration.

The audit report, released late Thursday night, covers procurement practices from 2021 to 2023, highlighting multiple instances of alleged corruption. According to the report, former Fenaka Managing Director Ahmed Saeed is accused of awarding projects without competitive bidding, granting MVR 49 million in contracts to companies owned by his family, and transferring over MVR 26 million to employee accounts, among other serious allegations.

In a statement issued today, the MDP claimed that the report was “politically authored”.

“The MDP welcomes fair investigations into any violations of laws or regulations during its administration, but this report is part of a propaganda campaign by the government. The party will respond to a fair trial, not to politically driven rumors,” the statement said.

The MDP further claimed that those named in the report were not questioned, suggesting that this undermines the credibility of the findings.

The corruption issues flagged in the audit report were not new. Former ACC Chairperson Mariyam Shiuna had brought similar concerns to the attention of then-President Ibrahim Mohamed Solih back in February 2021.

According to records, the ACC was investigating 22 cases related to Fenaka at the time, including corruption allegations against Ahmed Saeed. The report, signed by Shiun, detailed significant challenges faced by the ACC in pursuing these cases. The allegations had originally been raised by Fenaka employees themselves.

In response to the ACC’s findings, Saeed stated on April 8, 2021, that required reforms had been implemented, and described the accusations as part of a “political conspiracy.”

Adding to the controversy, former Deputy Managing Director of Fenaka and MDP Deputy Chairperson Ibrahim Waheed (Iburey) resigned in September 2022, citing internal corruption. In his resignation letter, he accused the leadership of misusing company resources and failing to pay small businesses due to mismanagement and politically motivated decisions.

“Many small businesses are suffering because the company is prioritizing contracts that benefit the chairman and others, while hiding state-ordered reforms behind the company’s board,” Iburey wrote.

In a separate development, Ahmed Saeed was sentenced today to four years in prison by the Criminal Court in a different corruption case.

He was convicted of authorizing payments to Blazon Inc. without confirming the completion of work under a 2019 agreement with Fenaka. Charges were also brought against Mariyam Dheena, the former head of procurement at Fenaka, although her hearing was not held today.

The court verdict coincided with the public release of the Auditor General’s report, drawing further scrutiny.