Mohamed Najah appointed Fenaka chief

The Privatisation and Corporatisation Board (PCB) on Monday announced the appointment of Major (retd) Mohamed Najah as the Managing Director (MD) of Fenaka Corporation.

Najah's appointment follows the resignation of Mohamed Muaz, who stepped down on Monday citing the financial challenges faced by Fenaka, one of the most heavily indebted state-owned enterprises in the Maldives.

In his resignation letter addressed to President Mohamed Muizzu, Muaz stated that the company’s financial situation had made it impossible to fulfil his responsibilities effectively. While he had worked to strengthen operations and reduce costs over the past year, Muaz emphasised that Fenaka’s debt could not be addressed through operating expense reductions alone.

"The company’s plans to overcome the situation have been shared with all concerned. However, no progress has been made," Muaz said in his letter.

He highlighted the company’s inability to pay employee salaries for October and November on time, describing the situation as unprecedented in recent history. He noted that Fenaka's operational condition had deteriorated to the point where it could not sustain its services due to expenditures exceeding revenue.

Muaz also detailed specific issues contributing to Fenaka’s financial struggles:

Fenaka's financial challenges and its impact on essential services have been under scrutiny. The company is one of several state enterprises undergoing restructuring to address inefficiencies.