Procurement processes at Fenaka Corporation Limited will henceforth be governed by robust policies to prevent past errors, the Managing Director, Mohamed Afeef Hussain, has stated on a programme aired on PSM News. Internal audits show previous management teams did not adequately scrutinise the procurement of goods for the organisation.
Fenaka supplies water, electricity, and sewerage services to the northern and southern Maldives, excluding a few islands. Because operations are highly technical, it must continually acquire equipment to maintain resources, Afeef explained, noting that recently, this essential work was not executed properly. Operating without diligence caused financial losses in areas where the company could have been profitable.
Services were previously obtained from entities failing to meet basic business criteria, Afeef noted, making supply uncertain and quality verification difficult, which mismanaged service delivery and inflicted financial damage. To rectify this, he asserted that "fundamental revisions must be implemented" to ensure strict compliance with public finance regulations. While state-owned enterprises are not legally mandated to adhere to the Public Finance Act, Afeef stated that the institutional framework must remain robust to ensure past administrative oversights "are never repeated."
The company is now arranging to import and store necessary spare parts well in advance, Afeef stated, adding that a comprehensive solution to these logistical challenges will be achieved upon the completion of Fenaka's new building.