FENAKA Managing Director Resigns

Muaz Ahmed Rasheed, the Managing Director of the state-owned utility company FENAKA, has resigned, citing insurmountable financial challenges and the difficulty of running the company sustainably.  

In a resignation letter addressed to President Dr Mohamed Muizzu and shared on his official X account, Muaz outlined the obstacles he faced during his tenure. He highlighted mounting debt, operational inefficiencies, and a lack of institutional support as key issues hampering the company’s progress. 

advertisement

ފެނަކަ ކޯޕަރޭޝަންގެ މެނޭޖިންގ ޑައިރެކްޓަރގެ މަގާމުން އިސްތިއުފާ ދީފިން. pic.twitter.com/TmadBgkvqw— Muaz Mohamed Rasheed (@muazmr) December 23, 2024

Muaz revealed that FENAKA currently struggles with debts exceeding MVR 4.3 billion, inadequate maintenance of electricity, water, and sewage infrastructure across most islands, and overstaffing. Despite cost-cutting measures saving MVR 160 million as of October 2024 compared to the previous year, he emphasised that these efforts were insufficient to address the company’s severe financial constraints.  

“I tried to work truthfully to fulfil responsibilities over the past year and achieved some progress to continue providing essential services to the people,” he wrote. “However, companies are required to manage expenses from the revenue they generate, and it is near impossible for FENAKA to do so given its current situation.”  

Muaz expressed frustration at the lack of cooperation from relevant institutions to implement plans aimed at “right-sizing” the company and achieving financial stability, noting that the company is required to hire more employees than it requires. He also noted unprecedented delays in employee salary payments in October and November, stating that such delays had never occurred in FENAKA’s history.  

In his letter, Muaz stressed the potential impact of service disruptions on the company’s reputation and the public, adding that he had repeatedly sought solutions from the Finance Ministry without success.  

“Disruptions to essential services provided by the company will result in bad repute for myself, the company, and yourself, causing people to face significant difficulties,” he warned.  

Muaz concluded by saying he could not see a viable path forward for FENAKA under his leadership, prompting his decision to step down.