Kulhudhuffushi council to sure Fenaka over electricity agreement

The Kulhudhuffushi City Council has decided to initiate legal proceedings against Fenaka Corporation for its refusal to sign an electricity service agreement with the council, in line with provisions outlined in the Decentralisation Act.

The decision was passed during the 206th general meeting of the fourth session of the council, held on Wednesday.

According to the council, the Decentralisation Act assigns the responsibility of providing electricity services on islands to the respective island councils. In instances where a third party provides the service, an agreement is required between that party and the council.

The council stated that it has made repeated written requests to Fenaka to sign such an agreement, but these requests have not been accepted. Fenaka has reportedly responded that, as it was established by presidential decree, it should not be considered a third party as defined under the law.

However, the council maintains that Fenaka qualifies as a third party under the Local Government Act. It further stated that Fenaka’s reference to the absence of similar agreements with other councils is not a valid justification for its refusal to sign the agreement with Kulhudhuffushi Council.

The council noted that it has not received a response to its most recent communication to Fenaka regarding the matter.

In a public statement, the council announced: “The council has decided to take the matter to court because Fenaka has refused to fulfil its legal responsibilities and has not responded to an agreement with the council.”

Fenaka Corporation has not publicly commented on the council’s decision at the time of reporting.