Fenaka accused of large-scale graft; MDP members in defence
To settle the Fenaka debt, it recently took out a loan of MVR 400 million from the Maldives Islamic Bank (MIB), but its debt repayment remains to be seen.
By
Mohamed Muzayyin Nazim
Opposition lawmakers have urged the parliament to investigate the corruption and debt of Fenaka Corporation, accusing its managing director Ahmed Saeed of fraud. The members also criticised the Anti-Corruption Commission (ACC) for not looking into the cases.
Members were speaking while debating a resolution moved by opposition PNC Vice-President, Maduvvari Constituency Member Adam Shareef last April on the financial situation of Fenaka. In the resolution, he called for:
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To conduct a management audit of Fenaka
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To conduct a financial audit
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To develop a plan to repay Fenaka's debts in the near future
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To see if we can arrange for the companies to be paid without delay
The resolution also raised concerns that Fenaka has incurred debts of more than MVR 2.8 billion and is not paying the bills of small businesses. Almost all the opposition members who debated the resolution expressed their concern.
"The state needs to find a way to reach these companies at the earliest, and government shout attain the money owed to small companies who did work for them. As a result, the desolation that these companies and their employees are facing is something that the government really needs to understand and address," said The Democrats MP from Henveiru West constituency.
With that, he mentioned the corruption issues within Fenaka. He said:
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The ACC already has 31 corruption cases worth MVR 72 million against the company. They are cases filed by the company's employees
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The issues need to be looked at; if left unchecked, it encourages those who commit the thefts
"Not only this government, but the next government will be encouraged if the issues are not investigated. MVR 72 million is not a small amount," Hassan said, supporting the proposal to conduct an audit of Fenaka in the resolution.
"They should also give the notices to the institutions. If they do not do that, the people in those institutions should be replaced”.
'ACC's negligence very serious'
The Democrats MP Ilyas Labeeb alleged that the ACC members were transferred by the government after it started investigating corruption in Fenaka. Members appointed later, he said, had parked the cases 'without doing anything' to look into the company's corruptions.
Ilyas said, "Such issues of Fenaka are being discussed all over the island and there is negligence on the part of the ACC for not looking at it”, as the matter has indeed become discussed and speculated at national level.
"The resolution says that Fenaka owes MVR 2.8 billion. Now, the debt will be MVR 3.5 billion, based on the information available”.
He added:
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Small businesses have now gone bankrupt due to Fenaka not having paid them
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The businesses are facing many difficulties at the end of the year without paying their taxes and salaries to their employees, accruing still more expenses
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It should also be checked how the companies have been billed by Fenaka
Some members also criticized the company's Managing Director Ahmed Saeed.
Opposition members accused the government of using Fenaka as a tool to win the elections. The company's owners should now be held responsible for creating unnecessary jobs and getting the financial situation to that point, they said.
MDP members in defence
Members of the ruling main party, MDP, said the issues should be investigated and they are not trying to obstruct it. However, the members gave various reasons in defense as to why the company's financial situation reached that point.
Hulhumale MP Ali Niyaz said:
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Some households do not pay their water and electricity bills; Fenaka receives 60% of the bills owed them for water and electricity they provide
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Before the introduction of the minimum wage, Fenaka had to pay MVR 35 million. However, with the minimum wage, about MVR 50 million has to be spent on salaries alone
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Increasing Fenaka jobs was a good thing; the island will have the economic benefits from it
"When it comes to debt, we don't talk about the assets added by Fenaka. Fenaka has increased its assets far more than their debts," said Mohamed Aslam, MP from Hithadhoo Addu constituency, defending the company.
Aslam said the added assets were:
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To set up cable network in 100 several islands, 17,000 km of cable has been laid underground in these islands
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The company has installed 317 generator sets and expanded to generate more than 150 MW of power
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New power plants have been installed in 77 islands and the work is already underway in 20 islands
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Office buildings have been constructed in 135 islands; 13 offices are already under construction
Some MDP members, including Aslam, pointed fingers at previous governments for the financial situation of Fenaka. The debt came to this point because the debts of the governments were accumulating, they said.
19 contractors expressed concern over the lack of payment due to them who were awarded various works by Fenaka in August. They say the outstanding amount is more than MVR 200 million. Some contractors have staged protests in front of the Fenaka office on several occasions to demand the money.
To settle the Fenaka debt, it recently took out a loan of MVR 400 million from the Maldives Islamic Bank (MIB), but its debt repayment remains to be seen.
