Fenaka Corporation's Debt Exceeds RF 4.3 Billion, Says Managing Director Muaz Mohamed Rasheed

The Fenaka Corporation has accumulated a debt of over RF 4.3 billion due to mismanagement and poor policies over the last five years, according to the company's Managing Director, Muaz Mohamed Rasheed.

Speaking at a PNC meeting yesterday, Muaz disclosed that the company's financial condition had deteriorated significantly due to the decisions made by the previous management. Projects were awarded beyond the company's capacity, and many were either not carried out or operated at a loss, exacerbating Fenaka's financial woes.

Muaz emphasized that the new management intends to reverse this trend by focusing on profitability. "Unlike the previous management, we will not carry out any projects that are not profitable," he stated.

One of the most significant financial burdens highlighted by Muaz was the project to build and operate ice plants. Fenaka was awarded a project worth RF 4.5 million to construct and operate nine ice plants, which contributed heavily to the company's losses. Consequently, the new management has begun cancelling contracts for such loss-making projects.

Additionally, Muaz pointed out irregularities in the awarding of contracts under the former Economic Ministry. He cited an example where Fenaka was contracted for RF 295,000 for an ATM project, while the market rate for ATMs is RF 750,000. Despite bearing the costs of maintenance, electricity, and security services, Fenaka did not receive any revenue from the ATM operations, which benefited only the banks.

Upon taking over the government, the PNC discovered numerous unpaid bills and unrecorded expenses. Muaz recounted instances where unpaid bills were presented from various islands, none of which were documented in Fenaka's books.

"We found numerous works that were not recorded. We went to Raa Atoll last weekend, and people from every island came with unpaid bills for work done. None of this is recorded in Fenaka's accounts," Muaz said.

Looking forward, Muaz announced plans to develop a business strategy aimed at turning the company profitable over the next five years. This strategy includes establishing service centers and constructing landing crafts to reduce unnecessary expenditure.