Fenaka Audit

Fenaka Corporation audit reveals mass corruption, prejudice

  • Auditor General Hassan Ziyath has revealed mass corruption within the state-operated Fenaka Corporation
  • The audit revealed discrepancies in project assignment and equipment procurement

K. Male' 2017 Sep 20 | Wed 20:45 local 4,330

The state-operated Fenaka Corporation is Maldives' primary utilities company - Twitter

State auditors have revealed that the Fenaka Corporation is another state-operated office mired in mass corruption.

The audit revealed that in 2014, the Fenaka Corporation had purchased a total of 38 generators from a company without conducting price comparisons.

The state auditor’s office said that this is cause to believe that this was done deliberately in order to provide prejudiced financial benefit to the company from which the generators were bought.

The audit further showed that Fenaka had bought diesel from private retailers for prices higher than that endorsed by the state’s fuel trade company, Fuel Supply Maldives, resulting in an additional expenditure of MVR 21.8 million.

It also revealed that in 2015, Fenaka bought diesel worth MVR 26 million from a single company and for amounts adding up to 4.3 million from companies operated by the same parent company.

This company’s prices are on average MVR 1.6, per litre, more expensive than the amount stated by Fuel Supply Maldives.

State auditors then revealed that Fenaka had appointed two contractors for a sewage projects in a manner conducive of corruption. Moreover, Fenaka had also sent requests for proposal to a number of companies that failed technical evaluation.

Fenaka also paid contractors without deducting amounts levied as fines under its agreement with them, resulting in an unnecessary loss over 2 million.

The audit report also highlighted that Fenaka had conferred equipment procurement for its showroom in Addu City to a company while there were others better suited who had acquired more marks during evaluation.

This had resulted in the company having to pay an additional 2.3 million for the project.

The current administration of has seen a similar case of large-scale corruption and embezzlement. The largest of these was the massive graft case involving the Maldives Marketing and Public Relations Corporation and former Vice President Ahmed Adeeb.

Last updated at: 4 months ago | Reviewed by: Rushdha Rasheed

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