Auditor General assures Fenaka audit by Feb
He noted that delays in auditing were often a result of companies failing to submit their financial statements on time.
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Auditor General Hussain Niyaz on Thursday said that the audit report for Fenaka Corporation will be available before February of the upcoming year.
This assurance came during a budget review committee session where various members raised questions concerning Fenaka’s financial situation and the significant challenges facing the company.
The session was attended by finance minister Moosa Zameer, Auditor General Hussain Niyaz, and Maldives Monetary Authority (MMA) Governor DAhmed Munawar.
During the discussion, Hanimaadhoo MDP MP Abdul Gafoor Moosa questioned the officials on the state of Fenaka’s finances. In response, finance minister Zameer expressed the complexity of the issue, stating, “I met the Auditor General when I first took over the post and asked him for advice on how to proceed.
The Auditor General said, "‘What could be done? It has been three years since an audit was done. When I went inside to audit, the person there said to audit the system. This is the situation."
Thinadhoo North PNC Member Saudullah Haleem, who was also present, highlighted key financial difficulties faced by Fenaka. At the time of the previous government’s departure, the company’s debt had reached MVR 4.1 billion. This liability had severe repercussions on various private companies, some of which went bankrupt due to non-payment. Additionally, Fenaka’s failure to settle oil bills nearly led to the collapse of the State Trading Organisation (STO).
In response to concerns about the Audit Office’s legal authority to conduct independent investigations when audits are overdue, Auditor General Niyaz clarified the situation. His remarks pointed to the fact that Fenaka had not prepared financial statements for the past three years, which hindered the audit process.
“The office has conducted numerous special audits and financial audits of government-owned companies,” Niyaz explained. “These audits have been instrumental in identifying waste, fraud, and financial irregularities. However, a financial audit of a company can only proceed after the financial statements are prepared.”
He noted that delays in auditing were often a result of companies failing to submit their financial statements on time.
Despite these obstacles, Niyaz expressed confidence in the current management of Fenaka and stated that all outstanding financial statements would be submitted by February.
“I am very sure that the audit of Fenaka will be discussed with the current management and they will submit all the outstanding accounts before the end of February,” he said.
