Fenaka audit exposes rampant corruption at utility corporation
A special audit flagged several suspicious transactions that unduly benefited private parties, including the purchase of dollars from businesses without money exchange licenses, the purchase of diesel at inflated prices, and the awarding of lucrative projects without a fair bidding process.
23 Sep 2017, 9:00 AM
A special audit of the Fenaka Corporation has uncovered a foreign exchange scam and corrupt fuel supply and procurement deals that cost the state-owned utility company millions in losses.
The damning audit report made public Wednesday flagged several suspicious transactions in 2014 and 2015 that unduly benefited private parties, including the conversion of local currency to US dollars from businesses without money exchanging licenses, the purchase of diesel at inflated prices, and the awarding of projects without a fair bidding process.
The company’s former managing director, Mohamed Nimal, resigned last year after local media reported that Fenaka was owed US$1.1 million from a speedboat company that was paid MVR17.8 million to buy dollars. Nimal, a council member of the ruling party, was later put in charge of the state-owned Maldives Roads Development Corporation after a brief stint as deputy minister of tourism.
The US$1 million scandal emerged in late 2016 after three dollar cheques made out to Fenaka with an invalid Mauritius Commercial Bank guarantee stamp bounced. In late August, the civil court ordered the speedboat company to repay Fenaka within four months.
Become a member
Get full access to our archive and personalise your experience.
Already a member?
Discussion
No comments yet. Be the first to share your thoughts!
No comments yet. Be the first to join the conversation!
Join the Conversation
Sign in to share your thoughts under an alias and take part in the discussion. Independent journalism thrives on open, respectful debate — your voice matters.
