An audit report on Fenaka Corporation - the state's second utility service provider besides STELCO - had faced an annual loss of over MVR 800 million in 2023 alone.
The report published by the Auditor General's Office shows the company reported a total annual loss of MVR 813,447,455 in the review year, which is twice more than the MVR 425 million loss incurred in 2022.
By the end of 2023, the total financial loss of the company had crossed MVR 1.64 billion according to the report. While the company had generated a revenue of MVR 2.25 billion, the company's retained earnings post expenditure deduction stood at MVR 840 million.
In 2022, Fenaka generated a total revenue of MVR 1.97 billion, and a gross profit of MVR 863 million.
Remuneration
2022: MVR 282 million
2023: MVR 348 million | 23 percent increment
Staff training
2022: MVR 1.55 million
2023: MVR 8.02 million | 400 percent increment
Directors' remuneration and allowances
2022: MVR 680,463
2023: MVR 717,639 | 5.5 percent increment
Other expenditures and allowances
2022: MVR 199 million
2023: MVR 235 million | 17.9 percent increment
2023 coincided with the presidential election year, while several state-owned enterprises (SOEs) are often mired in allegations of excessive hiring practices close to such elections as means swaying public opinion. Out of all the SOEs, Fenaka Corporation has the most significant number of allegations in the past.
The company has been accused of corruption and misconduct in awarding contracts to third-parties and in employment.
These accusations have been formally lodged with the Anti-Corruption Commission (ACC) which has been probing the corporation for sometime.
According to statistics from Privatization and Corporatization Board (PCB) published in 2023, Fenaka Corporation possessed the highest workforce during the review year.
The total workforce of Fenaka Corporation during the first quarter of 2023 stood at 7,379 employees which is a 62 percent increment compared to the workforce total in 2018.
Moreover, Ahmed Saeed, the Managing Director of Fenaka Corporation during Solih Administration also faces severe corruption charges, while the ACC had probed into these allegations and submitted its findings to the state to press charges. Besides Saeed, several other high-ranking Fenaka Corporation officials have been alleged of corruption as well.