Agreements made between Fenaka Corporation and Construction Ministry to build sewerage systems in 16 islands are being terminated as the work is not being carried forward as per the agreed terms.
Agreements made between Fenaka Corporation and Construction Ministry to build sewerage systems in 16 islands are being terminated as the work is not being carried forward as per the agreed terms.
In a press conference held today, Fenaka Corporation's Director Abdul Wahid Mohamed said that work on the terminations are being carried out at speed.
He said that while MVR 518 million has been issued as advance funds for the project, MVR 92 million has already been spent.
"The funds were not made the best of in the project. I cannot say for sure, the financial records were not properly kept," he said.
He stated that while the corporation had undertaken such a large scale water and sewerage project, the company lacked the necessary machinery to conduct the work, adding that excavators, lorries, pick up trucks and such equipment had also been taken on rent.
This caused the project costs to further rise, with the rent for these machinery having to paid even during the period when the work had been halted, he said.
"This project would cause a total loss of MVR 170 million. If the records had been properly kept, we would see the loss is even bigger than this."
Wahid said that contractors have issued MVR 55 million in relation to these projects to date. However, there is a commitment to issue MVR 439 million. He said that Fenaka discontinues the projects at this time, they have to take responsibility for MVR 384 million.
Staffing for project implementation also had issues surrounding it.
Wahid said that the lowest level labourers sent to conduct the work had been given a monthly pay of MVR 45,000. This was paid from company funds, as the people sent to conduct the work were on company's payroll, hence getting their set salaries, together with allowances for working out of the island, totaling at MVR 45,000.
He said that the expenses made on employees had also not been recorded properly. While a single employee was paid MVR 45,000, this was not considered as a project expense.
"For years, this high expense has been made. This is not sustainable. Even a consultant this area will not get paid a salary in this range."
Wahid said that subcontractors had been paid beyond what was allocated from the Construction Ministry.
"For example, to do the EIA, for that component we had determined to spend MVR 500,000. But when sub-contracted, it has been awarded for a much higher rate. So this has been causing loss right from the start," he said.
In this way, the RO Plant and pump station construction had also been contracted at higher than decided rates. Although the government set a price range between MVR 7 million and MVR 10 million for the RO Plant, it was given to the sub-contractor for between MVR 10.5 million and MVR 12 million.
While Fenaka began the projects, even the islands where it has been completed most has only seen 15 percent of work. While the projects are terminated, it is being decided what will be done with 26 RO Plants that Fenaka had procured for the project.
- Baa atoll Dhonfalhu
- Baa atoll Fehendhoo
- Baa atoll Folhadhoo
- Baa atoll Kudarikilu
- Baa atoll Kihaadhoo
- Shaviyani atoll Bileiyfahi
- Shaviyani atoll Noomara
- Noonu atoll Landhoo
- Noonu atoll Milandhoo
- Noonu atoll Magoodhoo
- Thaa atoll Madifushi
- Thaa atoll Dhiyamigili
- Meemu atoll Raiymandhoo
- Meemu atoll Naalaafushi
- Laamu atoll Kunahandhoo
- Alif Dhaalu atoll Fenfushi
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