According to the Managing Director of FENAKA, Muaz Mohamed Rasheed, all of the employees dismissed were contract employees hired on a project basis, highlighting that none of the permanent FENAKA employees were affected by this dismissal.
VFP
FENAKA Corporation, a government-owned entity in the Maldives, frequently finds itself at the centre of corruption and financial mismanagement allegations. By the end of 2023, the corporation was already embroiled in numerous corruption accusations, particularly concerning the procurement of materials and the overall handling of its finances. These issues have significantly contributed to an escalating debt crisis within the company.
Over the years, the Maldivian public has become increasingly aware of a pattern where certain state-owned enterprises, including FENAKA, reportedly expand their workforce, especially in the lead-up to elections. This practice has led to persistent allegations that FENAKA engages in corrupt activities, including nepotism and patronage hiring, to gain political favour. Despite repeated scrutiny and public outcry, FENAKA continues to face these recurring accusations of corruption and financial mismanagement. One of the biggest corruption allegations that the company has faced recently was highly noted, as the company was singled out for over-employing staff and spending a big chunk of state expenditure on salaries. These concerns were raised by the Director General of Transition Abdul Raheem Abdulla who expressed the dramatic change in FENAKA’s workforce, which according to him went from 2,700 employees in 2018 to 8,000 around the end of 2023.
This is an alarming development at a time when the company’s debt has exponentially increased. Fenaka seems to have employed people without proper planning; some don’t even have a chair to sit on or any work to do.
This over-employment is worsened by the fact that FENAKA has now become known for its inability to settle its expenses, and it appears that after a long delay in addressing these financial mismanagements, FENAKA is finally ready to face the music as the company announced the dismissal of over 700 employees. According to the Managing Director of FENAKA, Muaz Mohamed Rasheed, all of the employees dismissed were contract employees hired on a project basis, highlighting that none of the permanent FENAKA employees were affected by this dismissal. The project employees, who have already been given their notice for dismissal were all employed for construction work according to the company.
As the company’s Managing Director revealed further details, questions are being raised as to why the company delayed taking these actions while continuing to struggle financially over the years. According to the Managing Director, these dismissals will lead to the company being able to save between MVR 7 to 9 million each month. Further discussing the details around the dismissals, it was also revealed that all of the employees who are going to be dismissed by the 15th of August, 2024 were contracted for projects that have already been completed or projects that have come to a halt. This is the second time FENAKA corporation has dismissed a large number of employees in the current administration, as FENAKA previously dismissed around 900 employees who were also hired for projects that were either completed or came to a halt.
Source: FENAKA Corporation under scrutiny for debt and corruption | Maldives Financial Review (mfr.mv)
FENAKA in haradhu kuda kuran 700 muvazzafun vaki koffi | Dhauru
