Fenaka board altered rules to favour management decisions, ACC says

The Anti-Corruption Commission (ACC) has stated that the board of directors of Fenaka Corporation repeatedly amended internal policies to align with the preferences of the management in office at the time.

The ACC made the statement on Sunday during a meeting of the Parliamentary Finance Committee’s sub-committee investigating corruption and procurement irregularities within Fenaka. The session was attended by focal points appointed by Fenaka and the ACC.

ACC Senior Investigation Officer Ali Adam said that the board’s practice of altering policies at the request of management had made it difficult to establish illegality in some cases.

“What we have noticed is that the board of directors changes policies according to the wishes of the management at the time. Because they do so under internal regulations, what Fenaka has done is often not technically illegal,” Ali said.

He added that the ACC has faced challenges accessing documentation. “When we request Fenaka’s records, they are channelled through the legal department. We have asked to directly access the documents, but that was not allowed,” he said.

Ali urged the committee to examine Fenaka’s procurement policies closely, noting that frequent amendments by successive management teams complicate investigations.

The sub-committee has requested details from Fenaka regarding corruption and fraud cases involving senior management under the previous administration. Fenaka submitted names of 13 department heads and 19 project staff but did not include details of related transactions, prompting the committee to request additional information.

Fenaka representatives said the delay was due to incomplete record-keeping and ongoing audit reviews. “Many documents were not properly maintained. However, we are in the process of compiling and submitting the missing information,” a company representative told the committee, adding that the process would be completed within two weeks.

Fenaka also informed the committee that new procedures for record maintenance have been introduced to address documentation gaps.

The sub-committee plans to issue a preliminary report before Parliament recesses this month, outlining weaknesses and recommendations for improvement. Fenaka will then have two months to implement corrective measures. A detailed review is scheduled when Parliament reconvenes in February.

The ongoing inquiry follows the Auditor General’s report on Fenaka for 2021–2023, released in September. Following the report, President Mohamed Muizzu instructed authorities to investigate, and the Prosecutor General directed the ACC and police to expedite the probe and identify individuals who benefited from the alleged misconduct.