Audit reveals Addu Fenaka recruited employees using just ID cards

An audit has revealed serious procedural lapses in the recruitment process of employees at Fenaka Corporation’s Addu branch, revealing that individuals were hired solely by submitting their ID cards bypassing standard hiring procedures.

The audit, which covers the period from January 2020 to June 2023, was released Friday night and highlights systemic issues in the operation of the Addu branch, particularly in relation to staff recruitment for project work.

According to the report, 85 individuals including an assistant manager, eight supervisors, and seven administrative officers were recruited for four specific projects in Addu.

While 273 employees were hired, 158 were also laid off by the end of 2023. These recruitments were not linked to existing vacancies but were made specifically for projects, with little to no formal evaluation.

The audit states that the standard recruitment process where requests for personnel must be made in writing to the Human Resources Department with approval from the Managing Director was bypassed.

Instead, project offices sent ID cards via fax or email along with informal requests to hire individuals on a contractual basis. The report notes that these recruitments were carried out with permission from the CEO, but documentation does not show involvement or approval from the Managing Director as required.

“In recruitment for projects in Addu City, only ID cards of prospective recruits were submitted, and project departments communicated with HR via fax to request hires,” the report said.

The audit found no evidence of interviews or background checks during the recruitment process, raising concerns that unqualified individuals may have been employed.

Furthermore, it revealed the absence of a robust framework for hiring contract or temporary staff, increasing the risk of mismanagement and favoritism.

A total of 22 project-based employees were given job promotions, and at least three were made permanent staff despite the lack of proper performance evaluation records. According to Fenaka’s policies, all employees should be assessed before confirmation, yet documentation to support these assessments was missing.

The report emphasized that in many cases, project offices received only transfer summonses without supporting paperwork, suggesting that some staff were made permanent or promoted in contradiction to company policy.

The Auditor General’s Office has recommended referring the matter to the Anti-Corruption Commission (ACC) for further investigation.