President Dr Mohamed Muizzu announced today that the government has decided to dissolve Fenaka Corporation and transfer all its services under STELCO. With this change, STELCO will then be responsible for providing electricity services to all islands across the country.
Speaking at this afternoon's press conference at the President's Office, President Muizzu said that all the issues of corruption and misappropriation conducted within Fenaka is clearly evident through reports from the Auditor General's Office. With this, several efforts had been taken to improve and correct services at Fenaka, he added.
Citing technical experts, the President said that Fenaka is no longer a company that can be sustainably operated. Due to this, the government has ultimately decided to dissolve the company, he said.
Once Fenaka is dissolved, all services provided by the company will then be transferred under STELCO, the President explained.
"The government has deeply considered this matter and held multiple discussions before reaching this decision to dissolve Fenaka and move the services to STELCO. Once this process concludes, it is STELCO that will be providing country-wide services," President Muizzu said.
During the press conference, President Muizzu also announced the government's decision to dissolve the Road Development Corporation and to transfer all its projects to the MTCC.
The President asserted that when services are duplicated across various companies, it ultimately leads to increased expenditure for the State.
While the government has decided to dissolve Fenaka, the Anti Corruption Commission is looking into 161 cases against the company, after which MVR 21.4 million is to be recovered.
Fenaka's audit report highlights several instances of corruption committed during former President Ibrahim Mohamed Solih's administration. In one such case, former Fenaka MD Ahmed Saeed has received a prison sentence.
Even at present, Fenaka has over 8,000 employees. Fenaka has said that the high number of employees, and the subsequent costs of salaries, has led the company to face struggles in acquiring necessary spare parts and fuel for generators.
