Fenaka Overhauls Procurement Policy Following Audit of $144 Million in Contracts

Fenaka Corporation Limited is reviewing its procurement policy to align with the guidelines of the Privatization and Corporatization Board (PCB), aiming to establish a more transparent and accountable system for state-owned utility services. As part of this modernization effort, the company recently held a symposium involving over 50 employees. The session focused on refining procurement planning, bidding and evaluation processes, contract management, and record-keeping. By gathering technical input from staff directly involved in procurement, Fenaka intends to identify implementation challenges and ensure the new framework meets operational requirements. The policy overhaul follows a critical special audit by the Auditor General’s Office, which uncovered significant irregularities in how Fenaka awarded goods and services contracts. The audit revealed that between 2021 and 2023, Fenaka awarded 673 contracts totaling approximately USD 144.62 million. Most concerningly, 438 of these contracts—valued at roughly USD 84.31 million—were awarded outside the mandatory open bidding process, violating standard procurement procedures. These findings were subsequently reviewed by the Public Accounts Committee of the Majlis (the Maldivian Parliament). On August 11, Parliament approved specific measures to rectify the identified lapses and mandate a total revision of Fenaka’s procurement procedures. To ensure accountability, the Majlis also approved referring the audit's findings to the Maldives Police Service and the Anti-Corruption Commission for further investigation. Fenaka stated that the ongoing review is a critical step toward creating a robust system that prevents future procedural violations and ensures that public funds are managed with higher scrutiny. The company maintains that integrating PCB guidelines will provide the necessary oversight to deliver more effective and lawful results in its operational spending.