Fenaka ordered to pay MVR 7 million in case linked to former MD Saeed

Civil Court has ordered Fenaka Corporation to pay MVR 7 million within 30 days to Kaizan Investment, a company tied to a corruption case involving the utility’s former managing director, Ahmed Saeed.

Saeed and former Fenaka chief accountant Mohamed Masood were charged in July with abuse of office over the purchase of an ice plant built by Kaizan Investment in Laamu atoll Maamendhoo.

According to the verdict, Fenaka signed an agreement with Kaizan on 7 December 2023 for the sale of the ice plant, valued at MVR 11.3 million. The suit, filed by Kaizan, sought MVR 7.9 million, including MVR 7.2 million in unpaid dues, MVR 580,155 in damages for non-payment and MVR 100,000 in litigation costs.

The court found that Fenaka had failed to pay MVR 7.2 million of the agreed amount. While the company argued it could not make the payment in one lump sum and asked for a 12-month installment plan, the court ordered full payment within 30 days. Claims for damages and litigation costs were dismissed.

The corruption charges stem from Fenaka’s April 2023 agreement with the fisheries ministry to build an ice plant in Maamendhoo. Instead, Fenaka purchased an existing facility from Kaizan Investment without the approval of the tender evaluation committee.

Prosecution allege that Saeed attended a board meeting on 7 September 2023 and discussed the purchase without disclosing that Fenaka was already constructing an ice plant on the island. The agreement signed that same day, they said, enabled the company to channel MVR 11.3 million to Kaizan Investment.