Fenaka bought MVR 111M oil from ex-MP’s company without procurement, audit finds

The Auditor General’s Office has reported that Fenaka Corporation purchased MVR 111.95 million worth of motor oil from a company owned by former Henveiru South MP Hussain Shameem between 2021 and 2023 without issuing a procurement announcement.

The audit, released on Thursday, reviewed Fenaka’s financial transactions over the two-year period. It concluded that the company’s former management violated procurement laws, rules and PCB guidelines.

According to the report, Fenaka spent a total of MVR 127.76 million on motor oil during 2021–2023. Of this, MVR 15.8 million—about 12 percent—was purchased from state-owned companies MTCC and STELCO. The remaining 88 percent, valued at MVR 111.95 million, was supplied by Serious Enterprises Pvt. Ltd., owned by former MP Hussain Shameem, who also served as deputy leader of the MDP parliamentary group during the previous administration.

The report stated that the procurement process created opportunities for corruption.

The then Managing Director of Fenaka, Ahmed Saeed, has been charged with fraud in relation to the case, which is ongoing in court.

Following the release of the report, some members of the public and political opponents criticised the MDP over the transactions. Meanwhile, MDP supporters alleged that the timing of the report was intended to divert attention from a planned demonstration against the government. Others have expressed concern that similar audits have not been conducted or made public during the current administration.