Utility services in eight islands of Meemu Atoll officially handed over to STELCO
Fenaka Corporation has officially transferred its utility services across eight islands in Meemu Atoll to STELCO. The decision follows Fenaka’s admission of significant operational challenges, citing escalating costs and a workforce size that disproportionately exceeds its revenue. As part of a broader effort to streamline operations and enhance efficiency, the company has also initiated a staff reduction process under a newly established redundancy policy.
STELCO has officially taken over the utility services of several islands in Meemu Atoll today, including Dhiggaru, Kolhufushi, Maduvvari, Muli, Naalaafushi, Ratmandhoo, and Veyvah. | stelco
Fenaka Corporation Limited has officially handed over the provision of utility services across eight islands in Meemu Atoll to State Electric Company Limited (STELCO).
The islands handed over to STELCO for service provision include M. Muli, Diggaru, Kolhufushi, Maduvvari, Mulah, Naalaafushi, Raiymandhoo, and Veyvah.
At a ceremony held to officially transfer utility services in eight islands of Meemu Atoll from Fenaka Corporation to STELCO, the agreement was signed by Fenaka’s Managing Director, Muahmmad Afeef Hussain. Managing Director Dr. Ali Azwar signed the agreement on behalf of STELCO.
In April, Fenaka also handed over its service operations in three atolls to STELCO.
Fenaka Corporation's Managing Director, Mohamed Afif, recently stated that the company is facing significant operational challenges in service delivery due to escalating costs.
In an interview with state media PSM, the Managing Director of Fenaka Corporation revealed that the company currently employs approximately 8,000 staff, with a monthly payroll expenditure of nearly MVR 90 million. The Managing Director further stated that a redundancy policy has been approved, noting that the current workforce size is disproportionate to the company's revenue.
As the company initiates a redundancy program, allegations have surfaced regarding government conduct during the election period. These reports suggest that a significant number of staff were hired and unfair promotions were granted to influence the outcome of the elections.
