The Finance Committee of Parliament has approved a request to investigate alleged corruption and money laundering linked to projects carried out by Fenaka Corporation’s Addu City branches during the previous administration.

The decision was made after the committee reviewed a special audit report on Fenaka’s branches and projects in Addu City, which highlighted financial irregularities and concerns over the management of company funds.

The audit report found that Fenaka had failed to recover MVR 77 million in outstanding electricity and water bill payments from its Addu City operations. It also highlighted that MVR 783,296 was spent on businesses linked to employees and their family members.

The report further stated that MVR 130,220 in petty cash was withdrawn through forged documents. Of the MVR 4.3 million spent as petty cash for projects, auditors were unable to verify the amount spent on services and materials received at project sites.

During the committee meeting, Funadhoo MP Mohamed Mamdhooh and Hithadhoo Central MP Ahmed Azaan proposed referring former board members and individuals involved in alleged misuse of Fenaka funds to the Maldives Police Service and the Anti-Corruption Commission (ACC).

Mamdhooh also proposed holding the company’s former board and management accountable for approving projects that caused financial losses to Fenaka and recommended changes to procurement policies to prevent businesses linked to employees or their families from receiving contracts.

Azaan proposed that a money laundering investigation be conducted into accounts linked to family members of officials associated with Fenaka’s Addu City branches and requested regular updates to Parliament on the progress of such investigations.

The committee approved the motions, and the request for investigations was later approved by Parliament with 53 members voting unanimously in favour.