Efforts to merge Fenaka with the State Trading Organization (STO), as ordered by President Dr. Mohamed Muizzu, have come to a halt.
In a statement issued on Thursday, STO said the work was stopped following directives from the Finance Ministry.
"And based on the progress of the acquisition proposal submitted by the company to the government, the company's board of directors has decided to suspend the acquisition of Fenaka shares," STO said in an announcement to shareholders and relevant parties.
President Muizzu decided on August 26, upon the recommendation of the Cabinet, to make Fenaka a subsidiary of STO. Fenaka has been operating with huge financial losses.
The President also decided to form a committee comprising the Finance Ministry, Privatization and Corporatization Board (PCB) and senior officials of STO to carry out the merger process.
The President's Office said the decision was taken with the aim of strengthening the utility sector and providing better services to the people.
The President's Office has not yet commented on the reason for changing the President's decision.
