Fenaka audit: MVR 3.51 billion owed to suppliers, unverified, as STELCO takes over

This page sums up what eleven published sources reported. It is a record of what outlets said, not original reporting.

Fenaka Corporation's outstanding supplier payments reached MVR 3.51 billion at the end of 2024, up about MVR 511 million from MVR 2.99 billion a year earlier, according to the company's 2024 audit report released by the Auditor General's Office.^{1, 2} Atoll Times puts total outstanding payables at MVR 3.59 billion.¹

Fenaka lost MVR 547 million in 2024, after losing MVR 811 million in 2023. Sun Online reports accumulated losses above MVR 2.18 billion.^{1, 2} Atoll Times reports that current liabilities of about MVR 3.9 billion exceeded current assets by MVR 2.7 billion.¹

The Auditor General said the MVR 3.51 billion could not be verified, because the company did not provide complete supporting documents and creditor records.^{1, 2} The auditors also said they could not determine whether Fenaka can continue as a going concern, meaning keep operating.²

Atoll Times lists further findings:¹

• Supporting documents were not provided for MVR 398.46 million of MVR 1.44 billion in administrative expenses.
• Spending of MVR 1.19 billion on diesel and petrol and MVR 71.62 million on spare parts could not be verified.
• Subcontracted projects brought in MVR 36.89 million and cost MVR 357.99 million, and Fenaka had no adequate system to track them.
• MVR 1.62 billion recorded as work in progress could not be verified.
• Interest and penalties of MVR 4.48 million on a Treasury loan were not recorded.

On 7 September, President Mohamed Muizzu announced that Fenaka and the Road Development Corporation would be dissolved. He said technical experts had advised that Fenaka's independent operations were financially unsustainable, and that STELCO would take over its work and serve the whole country.³

Sun Online reports that he said audits showed the former MDP government had misused Fenaka, and that his own government had tried several times to improve the company.⁴ Sun Online describes Fenaka as a 100% state-owned utility founded in 2012, heavily in debt, and says it has faced corruption allegations under different governments.^{2, 4}

Sun Online says a special audit published last year flagged MVR 2.2 billion in financial irregularities at Fenaka between 2021 and 2023.² MV+ reported on 29 September 2025 that the Auditor General had released a report on Fenaka's purchases of goods and services in those years.¹¹

The opposition MDP called that report a "political report" released with an agenda. It said none of the people involved had been questioned, and that it would welcome proper investigations of any unlawful activity during its time in office.¹¹

The MDP statement was about the 2025 report, not the 2024 audit. The listed sources include no MDP response to the 2024 audit.

Utility services in Baa, Lhaviyani and Meemu atolls moved to STELCO before the dissolution decision. STELCO says it has now taken over utility operations on another 127 islands, with Laamu Fonadhoo the last to be handed over.^{5, 6} STELCO said four teams were deployed across the atolls to move assets and operations.⁶

On 14 October the Privatization and Corporatization Board dismissed Fenaka's managing director, Mohamed Afeef Hussain, who had been appointed on 27 April. The board gave no reason at first. Its president later told Sun Online the dismissal was linked to the merger plan, and said he could not give a date for completing the mergers.⁷

Fenaka offered voluntary resignations in June with four months' salary. MV+ reports that 108 employees asked to leave, and Sun Online that 107 left. The managing director said Fenaka then had about 8,000 staff.^{8, 9}

On 7 September, the President said the restructuring would include staff reductions, so that the remaining entities keep only essential personnel.³ On 5 October, Afeef said no staff reductions were planned during the transfer, and that employees and assets would move to STELCO.⁹

On 9 November, the Mahibadhoo Council in Alifu Dhaalu Atoll said Fenaka had dismissed 11 local branch employees without warning, and asked for them to be reinstated. Former vice president Faisal Naseem said dismissals must follow the Employment Act and that people must not be penalised for their politics.¹⁰ The listed sources include no response from Fenaka.

• Audit release: Sun Online says the Auditor General's Office published the report on Tuesday, and Atoll Times says Wednesday.^{1, 2}
• Final handover: Sun Online says Thursday, and The Standard Maldives says Friday.^{5, 6}
• Staff: the President spoke of cuts, while the managing director said none were planned during the transfer.^{3, 9}

• When Fenaka will be formally dissolved.⁷
• What happens to the MVR 3.51 billion owed to suppliers. The listed sources do not say whether STELCO takes on the debts.
• How the government and Fenaka's management respond to the 2024 audit. The listed sources include no response.
• Why the 11 employees were dismissed.¹⁰