Fenaka to Implement Strict Procurement Rules to Prevent Financial Losses

Fenaka Corporation Limited is overhauling its procurement policies to eliminate administrative errors and financial leakages, according to Managing Director Mohamed Afeef Hussain. Speaking on a PSM News programme, Hussain revealed that internal audits uncovered a significant lack of scrutiny in how previous management teams procured essential goods and services. As the primary provider of water, electricity, and sewerage services across the northern and southern Maldives, Fenaka relies on a constant stream of technical equipment to maintain critical infrastructure. Hussain explained that a failure to execute these procurement processes with due diligence led to operational inefficiencies and direct financial losses in sectors that should have been profitable. According to the Managing Director, the company previously engaged entities that failed to meet basic business criteria. This lack of vetting created an unstable supply chain and made quality verification nearly impossible, which ultimately compromised service delivery to island communities and damaged the corporation's finances. To resolve these systemic failures, Hussain asserted that fundamental revisions are now being implemented to ensure strict compliance with public finance regulations. Although state-owned enterprises are not legally mandated to follow the Public Finance Act, Hussain emphasized that Fenaka will adopt a robust institutional framework to ensure that past administrative oversights are never repeated. Looking forward, the corporation is restructuring its logistics to import and stockpile essential spare parts well in advance, reducing the risk of emergency procurement errors. Hussain noted that a comprehensive solution to these logistical challenges will be fully realized upon the completion of Fenaka's new corporate building, which will provide the necessary infrastructure for improved inventory management.