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MVR113 mln in unpaid bills owed to Fenaka: audit report

11 October 2018, MVT 10:16
FENAKA COOPERATION PRESS CONFERENCE
11 October 2018, MVT 10:16

A recent audit report revealed that state utility company, Fenaka Corporation, has not received MVR 113 million in unpaid bills.

The report noted that MVR 143 million was owed to the company by October 2016, out of which the period to recover MVR 13 million has long expired. As of the end of 2017, Fenaka is due to receive MVR 113 Million in unpaid bills.

The report stated that MVR 107 million out of the MVR 113 million, is from the services left unpaid for after the establishment of the corporation in 2012 by then President, Dr. Mohamed Waheed. MVR 5.7 million has been left unpaid for the utility service provided during former President Mohamed Nasheed’s administration. An additional MVR 39,786 is to be paid for the services of power plants.

MVR 15 million is owed from Gaaf Dhaal Atoll, while Haa Dhaal Atoll owes the company MVR 13 million.

The report also highlighted that the state has delayed the process of providing Fenaka the subsidy to lower the costs of electricity. Furthermore, the report stated that no agreements have been made, with regards to establishing a procedure for the subsidization of electricity.

Moreover, the report revealed that citizens have been billed in conflict of the prices established by the Maldives Energy Authority, with the report stating that during February 2015, Haa Alif Atoll, Shaviyani Atoll, Gahdhoo in Gaaf Alif Atoll, Thinadhoo in Haa Dhaal Atoll, Fuvahmulah and Addu City have all been billed lower prices than what the Energy Authority has stipulated.

The report stated that the utility company had suffered major losses for wrongfully billing Haa Alif Atoll, although the figure has not been revealed.

Among other issues the audit report focused on, the report stressed that the company operates on losses and that it does not generate enough revenue. Additionally, the report revealed that the company fails to meet project deadlines, and contracts third parties to work on their projects.

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