State utility corporation in shambles, audit reveals

A performance audit of the state utility corporation has exposed mismanagement, inefficiency and questionable hiring practices.

Fenaka Corporation, which provides electricity to more than 150 islands, made an annual profit only once since it was established in 2012.

“For the first three years after the company was formed, the fiscal outlook of the company did not strengthen at an acceptable rate. Expenses are higher than income and the company has not been operating at a profit,” an audit report published last week observed.

“Inventory holding period is increasing annually and the company’s debt is at more than half its capital.”