Fenaka to get 72% of MVR 903m SOE funds in supplementary budget
Budgetary spending on state-owned enterprises is a concern for financial institutions such as the World Bank and the IMF.
By
Ahmed Naif
Of the MVR 903 million allocated in the supplementary budget for state-owned enterprises (SOEs), 72% will be given to the Fenaka Corporation, which has been accused of corruption and is financially fragile.
The details in the revised supplementary budget sent to parliament last week by the government show that the Supplementary Budget will provide a total of MVR 903 million as capital to meet the expenses of four government companies. The bulk of the money is included to go to Fenaka. The details of the money are:
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Subsidy to Fenaka - MVR 421.9 million
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Government loan to Fenaka - MVR 231.3 million
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Total for Fenaka - MVR 653.2 million; That’s 72% of total Supplementary Budget
Fenaka owes more than MVR 2 billion to private companies and has recently taken out a loan of MVR 400 million from the Islamic Bank (MIB) to manage the debt. The company has also been given billions in advance from the electricity subsidy to cover its expenses.
The other government companies to be funded in the supplementary budget are:
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Urbanco - MVR 280.2 million
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Fund Management Corporation - 331.5 million
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RDC - MVR 60 million
Budgetary spending on state-owned enterprises is a concern for financial institutions such as the World Bank and the IMF.
The government has proposed a supplementary budget of MVR 6 billion.
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Recurrent expenditure - MVR 3.1 billion
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Capital expenditure - MVR 3.4 billion
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Budget financing (internally) - MVR 4.2 billion
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Budget financing (external) - MVR 1.9 billion
