Majlis Orders Criminal Probe into Fenaka Corruption Scandal

MALÉ — The People’s Majlis has voted overwhelmingly to initiate a criminal investigation into the former leadership of Fenaka Corporation, following the revelation of widespread financial mismanagement and suspected money laundering.

In a session held today, 53 out of 54 present lawmakers voted to approve a Public Accounts Committee report based on a special audit of Fenaka’s Addu City branch projects between 2021 and 2023. The findings paint a picture of deep-seated institutional rot, detailing how state funds were allegedly funneled into projects that lacked strategic planning and financial oversight.

The audit report highlights critical failures in project execution, revealing that Fenaka spent 117 million MVR on four major projects in Addu City that remain unfinished. Auditors estimate that an additional 68 million MVR will be required to complete them.

Beyond the cost overruns, the report identifies activity consistent with money laundering. Key takeaways from the investigation include:

• Unexplained Wealth: Investigators have been directed to examine the bank accounts of former Fenaka executives and their family members for deposits disproportionate to their known salaries.

• Procurement Malpractice: The company frequently leased equipment at vastly inflated costs, often leaving the items idle.

• Political Patronage: The report confirms that 273 employees were hired in violation of standard protocols, ballooning the workforce far beyond the company’s operational requirements.

The Majlis has mandated that the Anti-Corruption Commission (ACC) and the Maldives Police Service prioritize the investigation into these transactions. To ensure accountability, the Prosecutor General’s office has been urged to expedite these proceedings.

Furthermore, the Majlis has imposed strict institutional reform requirements:

• New Organizational Structure: Fenaka must conduct an internal assessment and present a revised staffing structure within 30 days.

• Conflict of Interest Bans: The company is required to reform its procurement policies within 45 days to explicitly prohibit the purchase of goods and services from businesses owned by company executives or their families.

• Oversight: The company must submit monthly progress reports to the Public Accounts Committee until the matter is fully resolved.

This parliamentary mandate marks a significant escalation in the government’s efforts to hold the former management of state-owned enterprises accountable for the country’s current fiscal distress.