Muaz Mohamed Rasheed, Managing Director of Fenaka Corporation Limited, has resigned today amidst growing financial challenges at the state utility provider.

In a letter to President Dr Mohamed Muizzu, later shared on social media platform X, Muaz detailed the severe financial constraints facing the company.

During his leadership, Fenaka, which provides essential electricity, water, and sewerage services to numerous islands across the Maldives, achieved notable financial improvements despite grappling with mounting operational challenges. The corporation successfully reduced its inherited debt of MVR 4.3 billion by approximately one billion rufiyaa over the past year.

Under Muaz's leadership, significant cost-cutting measures were implemented, resulting in savings of over MVR 160 million in operational costs between October 2023 and October 2024; however, he emphasised that these reductions alone are insufficient to address the company's financial crisis.

In his resignation letter, Muaz highlighted a critical issue: the company's inability to maintain operations based solely on its income, which contradicts fundamental business principles.

"The current financial situation makes it impossible to operate sustainably based on our revenue," he stated, noting that proposals to address these challenges have been shared with relevant authorities.

The resignation comes at a crucial time for Fenaka, as the company struggles to maintain its essential services whilst managing its significant debt burden. Muaz expressed concern about the company's ability to continue providing uninterrupted services under the current financial constraints, concluding his letter with well wishes for both Fenaka Corporation and the government's future endeavours.