Fenaka debt crossed MVR 4b by 2022 end, pres-elect's office says
This includes MVR 3.2 billion owed to suppliers.
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Debt of Fenaka Corporation reached MVR 4.1 billion at the end of last year, the president-elect's office said on Thursday.
Sharing the information in the reports prepared by the transitional committees on the state of State-Owned Enterprises (SOEs), transitional spokesperson Mohamed Firzul said the debt of the state utilities company includes outstanding bill payments to more than 1,000 suppliers.
Firzul shared information about the financial accounts of Fenaka, which is accused of corruption:
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The company's debt stood at MVR 4.1 billion as of last year
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This includes MVR 3.2 billion owed to suppliers
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1,149 suppliers not paid
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The debt includes MVR 958 million that has been outstanding for more than a year
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The company has taken out loans of MVR 901 million
Firzul said:
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Fenaka was not audited last year
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The company's management financial plan has not been prepared for this year
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The company declined to share with the transitional committee a list of outstanding vendors
Firzul said the state budget spends half a billion rufiyaa on Fenaka every year.
"The company has not followed administrative and financial management standards that should be followed in approving the company's budget. The company's budget for 2022 has been approved with a deficit of MVR 1.6 billion out of the total budget," he said.
Fenaka's 2023 budget also includes a deficit of MVR 960 million, but the budget did not include details on financing the debt, Firzul said.
Fenaka has recently borrowed MVR 400 million from Maldives Islamic Bank (MIB) to service its debt.
Meanwhile, of the MVR 903 million allocated in the proposed supplementary budget for state-owned enterprises (SOEs), 72% will be given to the Fenaka.
