Fenaka MD Muaz resigns, says sees no way to improve company

Managing Director of Fenaka Corporation Muaz Mohamed Rasheed has handed in his resignation today.

Muaz shared his resignation letter on social media X, in which he says that as the company's expenses are higher than its revenue, it has come to a point where services cannot be sustainably provided.

Hence, he states, he sees no way of improving the situation by remaining in the position.

Muaz, who was appointed to the post on November 28, 2023, had warned earlier this month as well that the company is reaching a financial downfall from which it would be impossible to rise.

In an interview with Mihaaru on December 5, Muaz said that as MVR 86 million beyond the company's revenues cannot be sourced, there were difficulties in paying salaries in the past two months.

"If we are to let 2000 staff go... if that option is not given, then my point is the Finance Ministry or the government has to provide assistance," he said then.

In his resignation letter, Muaz said that he had worked facing major challenges over the past year. He noted that satisfying results had not been received in efforts to provide uninterrupted services to the public.

He said that although companies ideally should be run on its own revenue, the situation that Fenaka is currently in makes this impossible.

Despite the challenges faced, Muaz said that over the last year, operation costs of Fenaka had been brought down by MVR 160 million.

He said that he had told President Dr Mohamed Muizzu as well that considering the heavy debts owed, it would be impossible to recover the company through reducing operational costs alone.

A report published by Fenaka yesterday states that operational costs have been brought down by MVR 160 million, and MVR 900 million of debt has been repaid.