Muaz Mohamed Rasheed, the Managing Director of Fenaka Corporation, disclosed that upon assuming leadership, 60 percent of the generators servicing the company’s island customers were found to be in disrepair.
Addressing attendees at a People’s National Congress (PNC) rally held last Sunday, Muaz highlighted the dire financial state inherited from the previous administration at Fenaka Corporation. He cited ineffective policies and mismanagement over the past five years as contributing factors.
“When I assumed the role of Managing Director, many islands lacked a guarantee of 24-hour electricity due to malfunctioning generators,” Muaz stated, underscoring the challenges faced upon his appointment.
Muaz further detailed the corporation’s proactive measures under his leadership, including the swift procurement and installation of 39 generator sets across various islands. He emphasized that these efforts were executed without accumulating debt, ensuring prompt payment to suppliers.
Muaz speaking at the PNC rally held on Sunday night.
“Approximately MVR 300 million has been disbursed to settle outstanding debts incurred by the previous management of Fenaka Corporation. These payments cover various operational and procurement expenses, benefitting 278 vendors to date,” Muaz informed.
In addition to financial mismanagement, Muaz raised concerns about alleged corruption within Fenaka, pointing to unauthorized projects that burdened the corporation financially. He specifically mentioned the construction of 48 ATMs at a cost of USD 19,130 each and multiple ice plants, including nine installations costing USD 292,000.
“The hiring of personnel prior to project completion exacerbated our financial strain,” Muaz added, shedding light on irregularities that have come to light during his tenure.
Looking ahead, Muaz outlined a comprehensive business strategy aimed at restoring Fenaka’s profitability over the next five years. This strategy includes stringent oversight of future projects and operations to minimize unnecessary expenditures.
The former Managing Director of Fenaka Corporation, Ahmed Saeed, and his administration are currently under investigation by the Anti-Corruption Commission (ACC) for alleged financial misconduct. ACC President Adam Shamil confirmed that investigations are underway into potential illicit gains from 60 projects conducted under Saeed’s tenure.
The ACC’s scrutiny will involve a thorough assessment of the accused’s assets to ascertain any illicit accumulation of wealth through these projects. Shamil noted concerns about undue influence in hiring practices and project awards that may have benefitted specific individuals.
