President’s Office Orders FENAKA Restructuring Under STELCO, Workforce Cuts
5 އޮކްޓޯބަރު 2026 | ހޯމަ 15:50The President's Office has instructed the Ministry of Finance to terminate redundant staff at Fenaka Corporation following its merger into STELCO, retaining only the essential personnel required for operations. Additionally, the government has decided to transfer the water and sewerage services of Addu and Fuvahmulah to MWSC and increase the state's shareholding in MTCC to 90 percent.
President Dr. Mohamed Muizzu. | Presidents Office
The President's Office has instructed the Ministry of Finance to terminate redundant staff at Fenaka Corporation Limited following its merger with State Electric Company (STELCO), retaining only a "practical number" of employees.
This was communicated in a letter sent to Finance Minister Hassan Zareer, signed by Ahmed Habeeb, the Principal Secretary to the President on Policy and Manifesto. RaajjeMV has obtained a copy of the letter issued by the President's Office on September 22, and multiple sources have confirmed the authenticity of the document.
The letter stated that a meeting was held on September 19, 2026, by the interim committee established to implement the President's reforms aimed at reducing expenditures, strengthening governance, and increasing the productivity of state-owned enterprises.
According to the letter, President Muizzu directed that rather than terminating a predetermined number of employees during the Fenaka-STELCO merger, the process should focus on identifying the most practical staffing levels required for operations. These essential employees are to be integrated into STELCO’s new organizational structure, with any remaining staff subsequently being released.
Furthermore, the directive stipulates that when Fenaka employees are transferred to STELCO, their total remuneration must not be lower than their current salary. The letter also mandates that the transition of all islands currently served by Fenaka to STELCO’s jurisdiction must be completed before the month of Ramadan in 2027.
Furthermore, directives have been issued to transfer the provision of water and sewerage services in Addu City and Fuvahmulah City to Male' Water and Sewerage Company (MWSC), while electricity services are to be managed by STELCO.
Furthermore, the Ministry of Finance has been instructed to refine its current calculations regarding the proposal to increase the government's stake in the Maldives Transport and Contracting Company (MTCC) to at least 90 percent, and to resubmit the proposal to the committee along with various options.
The letter further directed the Ministry of Finance to consult with relevant stakeholders and take all necessary steps to implement these decisions in accordance with established laws and regulations.
