Shimad Ibrahim Appointed Chairman of Fenaka Corporation Amid Transfer to STO

Fenaka Corporation Limited, a key state-owned utility provider, has appointed Shimad Ibrahim, Managing Director of State Trading Organisation (STO), as its new Chairman. This appointment follows the government's decision to make Fenaka a subsidiary of STO, a move finalized by the Cabinet on August 25.

In addition to Shimad's appointment, the Fenaka board has been expanded to include Ahmed Mazin, a former Minister of State for Finance, and Mohamed Nizam, STO's Chief Financial Officer. This restructuring comes in the wake of an Anti-Corruption Commission (ACC) investigation into severe allegations of misconduct by the corporation’s previous leadership. The investigation revealed incidents of financial mismanagement, where Fenaka paid several contractors above market rates, contributing to the company’s insolvency under the previous administration.

The Ministry of Finance has indicated that the integration of Fenaka into STO is part of broader efforts to enhance the efficiency and transparency of state-owned enterprises. As part of these reforms, STO is being repositioned to manage key utility services across the nation, signaling a new era of corporate governance for the utility sector.

This move is aimed at ensuring the financial sustainability of Fenaka, improving project delivery, and avoiding the operational issues that plagued the company in recent years.