The new management of Fenaka Corporation Limited has stated that the company acquired goods and services at a loss for the past five years.
At a press conference, Managing Director Muaz Mohamed Rasheed highlighted the actions that have damaged Fenaka in the past five years. He said that the company's procurement policy was overridden to purchase a large number of goods under emergency procurement, which is the most expensive form of transaction.
As such, Muaz said that USD110 million was spent on emergency procurement in 2022 alone when the funds could have been saved by planning in advance. He noted that Fenaka acquired generator sets and cables, which is not the most appropriate purchase to be made through emergency procurement. He detailed that USD53 million was spent to purchase 37.6km of cable.
Additionally, Fenaka stated that generator sets were purchased to conduct emergency work on 55 islands to the detriment of the company when the work could have been done in a sustainable manner within the company's policies. In addition to buying goods at a loss, Fenaka retained its workforce at a cost detrimental to the company. The new management highlighted Fenaka's failure to implement sustainable cost-cutting measures.