Muaz unleashes complaints regarding unpaid staff salaries, lack of gov’t support

The former Managing Director of Fenaka Corporation, Muaz Mohamed Rasheed has unleashed his complaints, revealing the difficulties he faced in running Fenaka Corporation.

He shared these complaints in his resignation letter sent to President Dr. Mohamed Muizzu. Muaz shared the letter on social media platform ‘X’.

Muaz stated that despite his efforts to fully carry out his responsibilities, he faced numerous challenges. He noted that the income received was not sufficient to run the company. He also highlighted that the company had spiraled into a terrible financial state.

Further, Muaz said that many islands where Fenaka provides services face issues such as lack of maintenance work and unresolved backlogs. He also mentioned that when he took over the company, it had a debt of MVR 4.3 billion. While Muaz disclosed the debt amount when he assumed the position, he didn't share details about the situation at the time of his resignation. Therefore, the current debt status of the company is unclear. RaajjeMV’s attempts to clarify the information was to no avail as Muaz failed to answer the station’s calls.

Another concern Muaz expressed was the need to increase the number of company employees beyond what was necessary. He didn't clearly state whether this was due to orders or influence. However, his letter suggests that as MD, he had no choice but to hire more employees than needed.

This is further evidenced by Muaz's statement that he didn't receive adequate support to rightsize the company. Despite these challenges, Muaz said that Fenaka had been working to reduce costs over the past year. He mentioned that from October 2023 to October 2024, more than MVR 160 million had been saved from operational costs.

Considering the company's debt, Muaz stated that merely reducing operational costs wouldn't be enough to save the company from its current situation. This implies that the company's expenses have become unmanageable.

Another concern Muaz raised was the inability to pay employees' salaries on time. He noted that even at the beginning of the month, November and December salaries for Fenaka employees hadn't been paid. Muaz highlighted that this was unprecedented in the company's history. He further stated that when these concerns were shared with the Ministry of Finance, they didn't receive backing.

Following Muaz's statements, the public has begun to question whether employees of companies will face more challenges like unpaid salaries in the future. They have also raised questions about whether the government is misrepresenting the financial state of companies and the government itself.