An audit report has revealed corruption in Fenaka involving more than MVR 1 billion in just two years during the leadership of former Managing Director Ahmed Saeed.
The report, released by the Auditor General's Office, includes details on fraud and corruption committed by the state company providing electricity to the atolls.
The audit found that from 2021 to 2023, Fenaka awarded projects worth MVR 2.2 billion under 674 different contracts. But 439 contracts valued at MVR 1.4 billion were signed without an open bidding process.
Contracts signed without a bidding process
- 294 contracts worth MVR 544,354, 451 to purchase electricity cables
- 82 contracts worth MVR 259,089,940 to purchase generator sets
- 33 contracts worth MVR 76,331,309 to purchase transformers
- 29 contracts worth MVR 491,697,195 for water and sewerage projects
Additionally, 57 projects were signed for the construction of new power plants and office buildings from 2021 to 2023. According to the audit report, MVR 1,069,248,952 were issued, although 41 of these projects were not completed by 2024.
Auditors estimate that the projects will cost an additional MVR 241 million beyond market rate. The 57 projects will cost MVR 767 million more than the market rate.
Fenaka also rented boats and landing craft at inflated prices. Of the 612 agreements signed during the three years, 344 were at prices above market value. As a result, Fenaka paid MVR 47.6 million more than the actual price.
As a result of this corruption, Fenaka had a debt of MVR 3.9 billion by the end of 2023. This includes MVR 2.9 billion in pending bills for one year. But the audit report noted that the company made regular payments to 79 parties.
When Fenaka faced the risk of bankruptcy, the government issued loans and MVR 4 billion to ensure services continued without interruption.
The company's former Managing Director Saeed is currently facing trial following an investigation by the Anti-Corruption Commission (ACC) into one of the cases.
ACC said it was investigating serious cases related to Fenaka, including six cases linked to Saeed. His passport was also seized in connection with the corruption.
