Former Managing Director of Fenaka Corporation, Ahmed Saeed has been sentenced to four years in prison after the Criminal Court found him guilty of misusing his official authority to release state funds without justification.

Despite the state requesting a sentence of one year and seven months, the court handed down a significantly harsher punishment on Sunday, highlighting the severity of the misconduct.

The case, investigated by the Anti-Corruption Commission (ACC), revolves around a controversial MVR 1.3 million agreement signed between Fenaka and a private firm, Blazon Inc., supposedly to manage the company’s public relations. While the original contract was signed before Saeed assumed office, it was under his leadership that a settlement agreement was executed on 25 April 2019, awarding Blazon MVR 848,000, despite no evidence that the company had delivered any services.

Saeed was charged under Article 513(c) of Law No. 9/2014 (Maldives Penal Code), with reference to Article 513(b), for abusing his position to authorize the payment.

In court, state prosecutors argued that there was no documentation or evidence to support any work completed by Blazon in accordance with the contract. The decision to proceed with the settlement, they claimed, was made without due diligence or internal review.

In his defense, Saeed asserted that the agreements were signed based on legal advice and to avoid potential litigation costs. He claimed Blazon failed to deliver only because Fenaka did not cooperate, and paying the settlement was a damage-control measure to shield the company from further losses.

His legal team brought forward former Fenaka legal head Ahmed Arif and legal department official Amjad Ahmed as defense witnesses, both of whom confirmed offering such advice. However, the court dismissed their testimonies, pointing to inconsistencies between their investigation statements and court depositions. The judge concluded that it was ultimately Saeed’s duty to verify that Blazon had fulfilled its contractual obligations before authorizing payment.

The verdict comes amid renewed scrutiny of Fenaka's operations. Just days before the sentencing, the Auditor General’s Office released a special audit highlighting systemic issues in the company’s financial management and procurement processes during Saeed’s tenure.

In response to the audit, Saeed posted a statement on social media late Sunday, defending his administration. He claimed that all procurement activities under his leadership, up until 17 November 2023, were conducted in full compliance with internal policies and board-approved procedures. He maintained that no contracts or services were awarded outside of this framework.

Despite these claims, both the court and the audit report paint a starkly different picture, one of gross negligence, questionable decision-making, and a troubling misuse of public funds.