Fenaka debt being repaid, says president
The President said the Fenaka debt will be reduced within the next month.
By
Aishath Fareeha Abdulla
The state-owned electricity and sewerage company, Fenaka, has started paying off its debts to the companies, President Ibrahim Mohamed Solih said on Wednesday.
Speaking in an exclusive interview with Atoll Times' sister publication Dhauru, President Solih said on Wednesday that Fekana has started paying its debts to STO and private companies.
Fenaka owes billions of Rufiyaa. Businesses are owed millions and there are many allegations of corruption within Fenaka.
At the end of last year, Fenaka had outstanding debts of MVR 2.22 billion to various parties and the company was in a financially fragile position, according to the financial reports released by the Privatization and Corporatization Board (PCB), which oversees state-owned companies
Looking at the financial highlights of Fenaka at the end of last year:
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Revenue stood at MVR 2.1 billion while expenditure stood at MVR 2 billion
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Expenditure increased by MVR 1.4 million
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Expenses increased in the areas of staff training, recreation club, staff accommodation and meals
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The company reported a profit of MVR 15.6 million
On the debt of Fenaka, the President said that the majority of the MVR 2 billion debt of Fenaka is due to the government's main trading company, STO.
“Now some private sector companies have been paid their dues since last week and the week before,” he said.
The President said the Fenaka debt will be reduced within the next month.
Asked whether he would take a loan to pay off the debt of Fenaka, the President said that although he had not taken any loan so far, he would need money to run the state enterprises. The money needed is obtained in the form of loans, he said.
'Companies are overloaded with work'
Noting that the government is implementing a large number of projects in many islands at the same time, the President said the work of government companies is overloaded.
"It is not only Fenaka and STELCO or MTCC that are working in Maldives. We are trying very hard to give work to the private sector. But there are some projects that have been awarded to one company and not to another," he said.
The President was referring to the fact that some private companies sometimes cancel their contracts and hand over the work to government companies.
“Especially, Fenaka is working to provide basic services to the people that have not been available for many days,” he said.
The President said he would work to recruit employees for Fenaka and other government companies.
The President said that he is working to reduce the debt of Fenaka. Speaking at Nolhivaram during his visit to the Haa Dhaalu province, the President said there was no intention of making Fenaka a profitable company as it provides basic services to the people.
