FENAKA Corporation under scrutiny for debt and corruption

To address its mounting financial woes, FENAKA resorted to borrowing MVR 400 million from the Maldives Islamic Bank (MIB).

While a lot of things may change overtime, one thing that remains consistent, even in a small country such as the Maldives is the increasing cases of corruption that so many of us are fighting to bring to light in hopes of a more transparent country and Governance. The growing concern about corruption continues to cast a shadow over the nation, with the latest corruption case to capture media attention revolving around the state-owned FENAKA Corporation, signalling a pressing need for transparency and accountable governance.

While corruption has been a persistent issue in the Maldives, the allegations surrounding FENAKA Corporation are particularly troubling. The company stands accused of engaging in corrupt practices related to the procurement of materials necessary for renewing oil tankers. This, however,  isn't the first time that FENAKA has found itself under the watchful eye of the Anti-Corruption Commission (ACC). The corporation has faced numerous allegations of corruption in the past, exacerbating its precarious financial situation. FENAKA currently finds itself mired in debt, with an estimated MVR 2.5 billion owed to other companies.

To address its mounting financial woes, FENAKA resorted to borrowing MVR 400 million from the Maldives Islamic Bank (MIB). This loan was split into two payments of MVR 200 million, with a three-year payment period and a 3.5 percent interest rate. These payments were guaranteed on June 22nd and August 27th, 2023.

The allegations of corruption related to material imports have now escalated further as the Anti-Corruption Commission (ACC) launches a full-scale investigation. The ACC's decision to halt all transactions associated with the case marks a pivotal moment in the fight against corruption within the country.

The fiscal strategy report published by the Ministry of Finance has shed light on the state's financial entanglement with FENAKA. It was revealed that the government had overspent on subsidies in an effort to make electricity more affordable, granting MVR 1.2 billion to FENAKA. Additionally, an extra MVR 213.3 million was allocated in the budget to manage the finances of FENAKA.

The ongoing allegations and investigations surrounding FENAKA Corporation underscore a growing concern over corruption in the Maldives. This case serves as a stark reminder of the pressing need for vigilance in combating corrupt practices that can hinder the nation's development and prosperity.

The FENAKA case is just one facet of a broader problem that the Maldives must confront as it strives to maintain its position as a global paradise. In the face of these challenges, the people of the Maldives continue to demand greater transparency and accountability in their pursuit of a brighter, corruption-free future.

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