Muaz Mohamed Rasheed has resigned from his role as Managing Director of Fenaka Corporation, citing insurmountable financial and operational difficulties. The resignation was tendered in a letter addressed to President Mohamed Muizzu on Monday.
In his letter, Muaz highlighted his efforts to improve the corporation’s operations and reduce costs during his tenure. However, he acknowledged that these measures were insufficient to address Fenaka’s mounting financial crisis. He described the challenges of managing a company burdened with significant debt and operational inefficiencies, which he argued made it unfeasible for the corporation to operate within its income.
Key Financial Struggles
Muaz pointed to several critical issues affecting Fenaka’s sustainability:
- A debt of MVR 4.3 billion inherited upon assuming leadership.
- Delays in paying employee salaries for October and November, marking a significant departure from past practices.
- Outstanding backlogs in providing electricity, water, and sewerage services across serviced areas.
- Overstaffing beyond operational requirements.
- Limited cooperation from relevant agencies to restructure the corporation effectively.
- Persistent expenditures exceeding revenue, further undermining the corporation’s ability to deliver essential services.
The delay in salary payments, in particular, was noted as a troubling indicator of Fenaka’s deteriorating financial health.
Unresolved Plans for Recovery
Muaz stated that operational plans to address Fenaka’s financial crisis had been shared with the relevant authorities but lamented the lack of progress in implementing these strategies. He expressed concern about the company’s inability to sustainably deliver essential services, which ultimately influenced his decision to step down.
A Call for Urgent Action
The resignation of Fenaka’s Managing Director highlights the urgent need for comprehensive reforms to address the challenges faced by one of the Maldives’ key utility providers. As Fenaka plays a vital role in delivering electricity, water, and sewerage services across the nation, its financial stability and operational efficiency are critical to ensuring uninterrupted service delivery.
The government will now face heightened scrutiny over its plans to stabilise Fenaka’s finances and restore public confidence in the corporation’s ability to meet its obligations. The next steps in addressing Fenaka’s financial crisis will be closely watched as the administration works to resolve the pressing challenges left in the wake of Muaz’s resignation.
