An audit of state-owned Fenaka Corporation’s Addu City branch has uncovered huge acts of corruption as a result of which the company has suffered a loss of over MVR 76 million.
Auditor General’s Office (AG Office) has publicized the report of a special audit of projects undertaken by Fenaka’s Addu City branch between 2021 and 2023.
According to the audit report, the branch carried out four projects between 2021 and 2024 on an in-house basis. They are:
Development of a new central powerhouse building
Development of a new office building in Hithadhoo
Development of a new office building in Maradhoofeydhoo
Development of a new office building in Hulhumeedhoo
As of last year, a total of MVR 117,472,485 has been spent on these projects. The audit report cites MVR 109,063,500 as the total amount required to complete these projects. However, it states an additional MVR 68,500,844 will be required to complete these projects based on its current progress – marking a loss of MVR 76,910,898 to the company.
The audit report emphasizes that although Fenaka submitted the expense reports for these projects, they failed to account for materials moved between projects and costs related to employees.
Other issues highlighted in the audit report include:
Company’s petty cash being transferred to personal accounts of employees
Procuring materials from businesses linked to family
Using forged documents to withdraw petty cash
Failure to keep track of details of employees brought in outside of the city 
Purchasing perishable items prematurely and storing them improperly
Giving promotions and permanentizing employees in violation of policies
Renting goods at a loss
Revenue being deposited to personal accounts of employee (the employee returned the money upon instruction)
Paying GST to a company that has not been registered for the tax
Failure to collect MVR 77 million owed in electricity and water bills
Unknown whether a police report was filed over lost cables
Leakage of water amounting to MVR 9 million
Failure to ensure the quality of water
AG Office has recommended taking action against employees involved in actions that caused financial losses to the company and unfairly benefited a particular party, and has advised referring the matter to the Anti-Corruption Commission (ACC).
Fenaka is accused of negligence in providing electricity to the linked islands of Addy City, the second-most populous region in the Maldives after Male.
State-owned Fenaka has always been the target of corruption allegations. They include cases hiring employees beyond the needs of the company and projects being unfairly awarded to benefit the government at that particular time. Some of these cases have seen senior officials from the company face prosecution.