Ministry releases funds to pay Fenaka staff salary

The Ministry of Finance has released the funds required to pay the salaries of Fenaka Corporation employees, following concerns raised in parliament regarding unpaid wages.

Fenaka Corporation, a state-owned utility company, provides electricity services to numerous islands across the Maldives.

The issue came to light after Hanimaadhoo MP Abdul Ghafoor Moosa questioned the Finance Minister Moosa Zameer during a parliamentary sitting on Tuesday about the delay in salary payments. According to MP Ghafoor, Fenaka employees had not received their salaries, even by the third day of the month.

In response, Zameer confirmed that the Ministry of Finance had already released the necessary funds to Fenaka. However, he highlighted broader issues related to the company's financial management and operations.

"Fenaka is a revenue-generating company. The company's managing director and board of directors must also take responsibility for ensuring its financial stability," said the minister.

He questioned the sustainability of a model where the government consistently steps in to cover the company's shortfalls.

The minister added, "Why does the state set up a company to run these places? It would be much better if it became a government department. Then, employees could be paid like civil servants. But as a company, Fenaka should manage its own income and ensure financial independence."

The remarks point to ongoing challenges in the management of state-owned enterprises (SOEs) like Fenaka, which have often faced criticism for inefficiency and financial mismanagement. While Fenaka is intended to operate as a revenue-generating entity, frequent reliance on government support raises questions about its operational model and governance.