Govt says Fenaka recruitment led to decline in fisheries workforce

Government Spokesperson Mohamed Hussain Shareef has said the expansion of the state-owned utility company Fenaka and its recruitment of large numbers of young people contributed to a decline in the fisheries sector.

Speaking at a press conference on Saturday, Shareef said the previous administration had made recruitment into Fenaka a political practice, reducing the number of people working in the fishing industry.

He said the recruitment drive affected other sectors, particularly on small and medium-sized islands, by drawing workers away from traditional occupations.

"You need a crew if you want to go out to sea. But in several islands, fishing vessels had to be converted into supply boats and leased to resorts because there were no crews available," he said.

According to Shareef:

The government is currently restructuring Fenaka and has introduced a voluntary separation scheme under which employees who resign receive compensation equivalent to four months' salary.

Shareef said Fenaka had faced financial sustainability issues since it was established during the administration of former President Dr Mohamed Waheed and described the company as one of the government's fiscal challenges.

He said the restructuring process is expected to reduce Fenaka's workforce by one-third. The total financial savings will be determined once the pay grades of the positions being eliminated have been finalised.

Fisheries Minister Ahmed Shiyam has also recently raised concerns about the shortage of Maldivian workers in the fishing industry. He said recruitment by state-owned companies had contributed to the decline in the number of people working in the sector.