Govt transfers all Fenaka projects to MWSC

Fenaka has cancelled contracts for projects in the atolls and is in the process of handing over the projects to the Male Water and Sewerage Company (MWSC).

Construction Minister Dr Abdullah Muthalib, attending Tuesday’s Parliament session, said the government has decided to hand over all the water and sewerage projects carried out by Fenaka to the MWSC. He broke the news in response to a question asked by MDP MP from Kendhoo constituency, Mauroof Zakir regarding the ongoing water and sanitation project in Baa atoll Dhonfanu.

Muthalib said the government will not stop any water and sewerage projects that have already started. Therefore, he said, he is in discussions with the tender board to hand over the project to MWSC as soon as possible.

“Fenaka is not a contractor for such projects and is a service provider so the government decided to cancel the contract [Dhonfanu water and sewerage] and all other such projects awarded to Fenaka and talk to MWSC through direct negotiation to continue the projects,” Muthalib said.

Muthalib added:

The Construction Ministry met the MWSC in early May to discuss the handover of projects carried out by Fenaka.

Fenaka Managing Director Muaz Mohamed Rasheed said the Construction Ministry had handed over the water and sewerage projects to the MWSC for the purpose of completing the projects quickly.

During the government of former President Ibrahim Mohamed Solih, Fenaka had plunged into severe financial problems due to increased debt and a large increase in the number of employees. The company owes suppliers billions of Rufiyaa.

In order to cut costs, Fenaka is laying off employees hired for its projects. More than 900 employees have been laid off so far.