Parliament directs Fenaka to review workforce and develop new organisational structure

The People's Majlis has directed Fenaka Corporation to assess staffing requirements across all of its branches and develop a new organisational structure following the approval of a parliamentary committee report on an audit of the company's Addu branch.

The Public Accounts Committee's report, based on the audit of Fenaka's Addu branch covering the period from 2021 to 2023, was approved during Tuesday's parliamentary sitting with 53 votes in favour and none against.

The report contains 20 recommendations, including measures related to the company's organisational structure, procurement practices and employee welfare.

Under the directives, Fenaka has been instructed to determine the number of employees required at each of its branches to carry out its operations, establish a new organisational structure and ensure that future recruitment is conducted in line with that structure.

The company has also been instructed to submit details of the new organisational structure to the Public Accounts Committee within 30 days.

The committee further directed Fenaka to address employee health and safety issues, improve planning for the procurement of materials required to maintain services, and revise its procurement policy.

The revised procurement policy is to include measures preventing the purchase of goods and services from businesses in which company executives or employees, or their family members, have an interest. Fenaka has been instructed to submit the amended policy and its updated standard operating procedures on procurement to the committee within 45 days.

The report also examined projects carried out by Fenaka's Addu branch between 2021 and 2023.

According to the committee, some projects were outsourced without assessing the most cost-effective option for the company. The report also referred to allegations of possible money laundering.

The committee recommended that the conduct of the former board of directors and senior management be investigated by the relevant authorities.

Following parliamentary approval of the report, the findings have been referred to the Anti-Corruption Commission, the Maldives Police Service and other relevant agencies for investigation.

The report requests the authorities to investigate those found to have been involved in the alleged misuse of company funds and take action where appropriate.

It also calls for monthly progress reports to be submitted to the Public Accounts Committee until the investigations are concluded.

In addition, the committee directed the Maldives Police Service to investigate whether deposits inconsistent with declared salaries were made into the bank accounts of former managers of Fenaka's Addu branch and their family members, following allegations raised in the audit report.