Fenaka Corporation has been accused of buying cables for MVR 66 million from the Alpha Energy Solutions FZ-LLC of the United Arab Emirates (UAE) in a way that caused a loss to the Maldives' state-owned utility company.

Adhadhu has obtained documents showing that 18 purchase orders were placed for cables last month. It shows that the cables were purchased for different islands. However, officials told Adhadhu that the cables were bought at a price higher than the market rate.

The total value of the purchase orders approved by Fenaka Managing Director Muaz Mohamed Rasheed, Deputy Director Aishath Aiman and Director Abdul Wahid Mohamed stands at MVR 65.7 million.

Officials told Adhadhu that there was no current need to purchase more cables because a purchase for the islands was done recently.

When questioned, Managing Director Muaz admitted that 18 purchase orders had been placed to buy cables but he denied doing anything that would cause loss for the company.

"We have brought cables. We bring them now and we will bring them in the future. But we do it through the procurement process. Alpha Energy has also been given purchase orders. Even recently we placed an order," he said.

Muaz said Fenaka does not have enough cables for the islands at the moment and the cables are needed to upgrade the network due to voltage drops in the islands.

Noting that Fenaka does not have HV cables, Muaz said the HV cables are produced when an order is placed. He added that LV cables are also needed for the islands.

He further advised to submit a complaint to the Anti-Corruption Commission (ACC) if anyone felt this was causing losses to the company.

"The procurement will deal with it in accordance with the procurement policy here. Then if there is any bid, it will go to the committees and get the board's approval. Everything will be done by following the process," Muaz said.

Fenaka has laid off more than 700 contract employees to cut costs and recently cancelled employee leave allowances as the company's debt increases and its financial situation deteriorates.