Fenaka MD Afeef appointed state minister following company restructuring

Mohamed Afeef Hussain has been removed from his position as Managing Director of Fenaka Corporation and appointed State Minister at the Ministry of Climate Change, Environment and Energy, following the government's decision to dissolve the state-owned utility company.

Afeef confirmed his removal from Fenaka to Dhauru on Wednesday night, explaining that the decision was linked to the transfer of the company's operations to State Electric Company (STELCO).

"The reason for my removal is that Fenaka's operations are being taken over by STELCO, with all responsibilities being transferred under STELCO," Afeef said.

"With this change, I have been appointed Minister of State for Climate Change, Environment and Energy."

The government announced on 7 September that Fenaka would be dissolved and its operations transferred to STELCO as part of measures to reduce public expenditure and improve the management of state-owned enterprises.

The restructuring also includes the dissolution of Road Development Corporation (RDC), with its operations to be merged into Maldives Transport and Contracting Company (MTCC).

In addition, the government has decided to make Agro National Corporation (Agronet) a subsidiary of Maldives Industrial Fisheries Company (MIFCO).

According to the President's Office, the restructuring is intended to strengthen corporate governance, improve operational efficiency and reduce expenditure across state-owned enterprises.

The government has also indicated that the consolidation of these companies will result in a reduction in their combined workforce.

The changes form part of the administration's efforts to streamline the operations of state-owned companies and reduce the financial burden of maintaining separate corporate structures.