News Desk
MALE’ — Fenaka Corporation expects to save approximately MVR 22 million in annual costs once its workforce reduction programme is complete, Managing Director Mohamed Afeef said, as the state utility works to bring staffing levels in line with operational needs across the islands it serves.
Ninety-seven employees have applied for voluntary redundancy with financial benefits, and the process of completing their separation is now under way.
Afeef said the corporation, which employs around 8,000 people and spends roughly MVR 90 million a month on salaries, has more staff than needed in several of its island branches. Overstaffing, he said, drives up costs, reduces service quality and causes delays in day-to-day work that island communities depend on.
“When I travel to islands, both staff and community members ask me to move ahead with rightsizing as quickly as possible,” he said. “Once that is sorted, resources can also be properly allocated.”
The MD said the redundancy exercise is being carried out with a national interest perspective and that its benefits will be felt across the company. He noted that poor management of Fenaka has social consequences for island communities beyond just the quality of utility services, as the corporation is often the largest employer on the islands where it operates.
Fenaka provides electricity, water and sewerage services across most of the inhabited islands outside Male’. The corporation has faced persistent financial pressure in recent years, and the government has been pushing state-owned enterprises to reduce their dependence on subsidies and operate on more sustainable commercial footing.
The voluntary scheme was the first step. Whether further rounds of redundancy follow will depend on how the savings materialise and whether the rightsizing achieves the service improvements the MD has promised island communities.