Audit reveals major water losses from Fenaka plants in Addu

The Audit Office has released a special audit report highlighting significant water losses from two desalination plants operated by Fenaka Corporation in Addu.

According to the report, large volumes of water produced by the Hithadhoo and Hulhumeedhoo plants have leaked into the ground, resulting in financial losses for the company.

The audit reveals that 54% of the water produced by the Hithadhoo plant and 16% of the water produced by the Hulhumeedhoo plant was lost due to leakage. The report attributes this primarily to pipe bursts during road excavation works and insufficient monitoring of pipeline infrastructure. The audit also notes that in some cases, individuals who damage the pipes do not report the incidents to Fenaka.

The audit identifies the lack of systems to immediately detect water leaks as a key factor contributing to the ongoing losses. As a result, leakages are often only identified after significant amounts of water have already been wasted.

The report estimates the total financial loss resulting from the leaked water at approximately MVR 10 billion.

In addition, the audit highlights issues related to water quality testing. The Utility Regulatory Authority had mandated several tests in 2022 to ensure the quality of water supplied to the public. However, Fenaka failed to carry out 11 of the required tests.

While some water samples were reportedly sent to the company's headquarters in Malé for testing, the audit states that the test results were not available. Furthermore, two specific tests could not be performed due to the unavailability of required chemicals.

The audit report concludes that some of the tests outlined in the “Water Supply Quality Standard” issued by the Utility Regulatory Authority were not conducted, raising concerns about the quality of water being supplied to the residents of Addu City.