Fenaka’s Managing Director Muaz Mohamed Rasheed has said that there are solutions to overcome the major financial situation facing Fenaka, and with these solutions, the company’s debt can be cleared by 2027.
Speaking on a state media program, Muaz said that the previous government had hired an unsustainable number of employees and taken loans with high interest rates. He also said that they have to spend a large amount every month on unpaid fuel bills from that government. Muaz said that while Fenaka receives about 213 million rufiyaa per month, they need to spend an additional 85 million rufiyaa.
“There are solutions that can be brought to overcome the financial situation facing Fenaka. However, this cannot be done solely with the company’s income. Although sewerage is a service provided free of charge to the public, large expenses have to be incurred every month, and an appropriate subsidy should be received for this,” Muaz said. He said that instead of the current 11.3 million rufiyaa received as sewerage subsidy, a total of 35 million rufiyaa is spent on it. Therefore, he also said that the additional 85 million rufiyaa spent could be reduced to cover this expense.
Muaz further said that 30 million rufiyaa is spent on loans. He also said that they have requested the Finance Ministry to postpone the payments due to them for three years.
“We need the assistance of the Finance Ministry in restructuring two loans of 400 million rufiyaa taken from MIB by the previous government. It is also important to ensure that the money owed by government companies and institutions is received monthly.” Muaz said.
Muaz said that with these solutions, Fenaka’s debt can be paid off by 2027.
