No More Reliance on Gov’t Aid, Says FENAKA MD

FENAKA Corporation’s new Managing Director, Mohamed Najah, has announced plans to strengthen the company’s operations and reduce costs by 40% while ensuring it becomes less reliant on government funding.

In an exclusive interview with PSM News, Najah stated that the government should no longer be required to provide ongoing financial support to FENAKA. He acknowledged the company’s current need for assistance in repaying its debts but emphasised the importance of Fenaka becoming sustainable in the long term.

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Najah highlighted that FENAKA is already working to improve its management systems, with a focus on its procurement processes. A special project has been launched to optimise procurement, with an ambitious goal of cutting costs by 40%. “We aim to reduce the company’s costs through the procurement system alone,” he explained.

The company is also strengthening its workforce and organisational structure, although Najah clarified that this does not involve salary cuts or staff reductions. Instead, efforts are focused on bolstering management capabilities, and the company will seek expert advice where needed.

Regarding operational improvements, Najah noted that FENAKA is addressing the issue of oil thefts, which have historically contributed to financial losses. A new project aims to reduce these thefts by implementing more advanced monitoring technologies and involving personnel directly in oil fields. He pointed out that FENAKA had already saved MVR 8 million on oil costs last month and expects further reductions this month.

Najah’s strategy aims not only to pay off the company’s significant debts but also to enable FENAKA to expand its services and resume stalled projects. As the company works to strengthen its financial position, FENAKA will eventually become self-sufficient and less dependent on state funds.