Fenaka finances revealed, debts at record high

Fenaka Corporation Limited, a state-owned company providing electricity, water and sewerage to the Maldivian island communities, has revealed to have payables at a record high.

According to the financial documents acquired by TMJ, by the end of 2021, Fenaka owed MVR 1.4 billion in debts, making it one of the most indebted SOEs of the Maldives.

Fenaka payables were at MVR 627 million when President Brahim Mohamed Solih came into office. Therefore, Fenaka debt has increased by MVR 800 million in the last four years.

Strikingly, the highest debt was accumulated within last year where payables were at MVR 1.076 billion at the beginning of the year and had ultimately increased to MVR 1.4 billion by the end. This was an increase of around MVR 400 million in a year. The majority of the Fenaka payables were unpaid payments for services and goods from various companies, totalling roughly MVR 1.417 billion.

Fenaka barely paid any of the payables for goods and services last year and it was boldly underscored by the Privatization and Corporatization Board (PCB) as well.

While Fenaka continues to operate in debt, Fenaka suffered a loss of MVR 9 million within the first financial quarter of this year. However, PCB noted that Fenaka suffered the loss due to raised salaries and allowances to employees.

TMJ approached Fenaka Information Officer to acquire their financial stats for this article, however, the request was denied. The Information Officer asserted that the general public may lose confidence in Fenaka Corporation if its debts were made public.