Malé, Maldives – Muaz Mohamed Rasheed, the Managing Director of Fenaka Corporation, has resigned from his position, citing the company’s dire financial situation. The announcement was made in a post on X (formerly Twitter) earlier today.
ފެނަކަ ކޯޕަރޭޝަންގެ މެނޭޖިންގ ޑައިރެކްޓަރގެ މަގާމުން އިސްތިއުފާ ދީފިން. pic.twitter.com/TmadBgkvqw
— Muaz Mohamed Rasheed (@muazmr) December 23, 2024
In a resignation letter addressed to President Dr. Mohamed Muizzu, Muaz reflected on the challenges faced during his tenure and the strides made in maintaining uninterrupted services for the public. Despite these efforts, he highlighted the company’s unsustainable financial condition as a key reason for his decision.
Fenaka, a state-owned utility provider responsible for electricity, water, and sewerage services across many islands in the Maldives, is grappling with significant financial issues. Muaz revealed that:
- Fenaka’s debt has soared to MVR 4.3 billion, exacerbated by inadequate maintenance of infrastructure.
- Overstaffing and a lack of support for rightsizing have further strained the company’s finances.
- Operational expenses now far exceed revenue, leaving the company unable to sustain essential services.
- Employee salaries for October and November have been delayed, highlighting the financial crisis.
Muaz, who was appointed as Fenaka’s MD on November 29, 2023, stated that despite efforts, no clear path to financial recovery is visible. “Given the current state, I see no feasible way forward,” he said, marking the end of his tenure.
The resignation underscores the urgency of addressing Fenaka’s financial challenges. Observers note that these issues could disrupt basic services in islands dependent on the corporation’s operations.
The government now faces mounting pressure to intervene and stabilize Fenaka’s financial condition. This includes addressing its debt, optimizing its operations, and ensuring adequate funding to sustain critical services.
No announcements have been made regarding Muaz’s replacement or changes in Fenaka’s management. Raajje24 will continue to provide updates as more information becomes available.
