President Dr Mohamed Muizzu has resolved to designate FENAKA Corporation Limited as a subsidiary of State Trading Organisation (STO) Public Limited. This decision follows recommendations from his Cabinet and comes after detailed deliberations on a proposal presented by the Ministry of Finance during the most recent Cabinet meeting.
To facilitate this transition, STO will acquire 100% of the shares of FENAKA Corporation Limited. The decision is part of a broader strategy to improve the efficiency and standardisation of service delivery across the utility sector, as well as to strengthen FENAKA’s financial standing and operational capabilities.
For the transfer to take effect, STO will undertake necessary amendments to the company’s general rules and regulations. These amendments will be aligned with best practices to ensure stronger governance within the STO group. Additionally, STO will streamline business processes and implement changes independently to ensure a smooth transition.
In line with the Administration’s core policies, the restructuring will provide STO with the opportunity to optimise FENAKA’s workforce. Rather than terminating employment, the company will explore options to reassign employees to other areas within the organisation. This approach aims to minimise disruption and maintain employment levels.
A committee comprising representatives from the Ministry of Finance, the Privatisation and Corporatisation Board (PCB), and STO will be established to oversee the timeline and process of this transition. The committee will ensure that all necessary steps are taken to complete the transfer of full ownership of FENAKA to STO by the end of this year.
