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Fenaka audit uncovers MVR 1.37 billion procurement fraud during MDP administration

26 Sep 2025

MM News Team

Fenaka Corporation --- Photo: Gaafu media

The Auditor General’s Office (AGO) has released a special audit on the procurement and financial management of Fenaka Corporation, uncovering procurement irregularities exceeding MVR 1.37 billion between 2021 and 2023, during the tenure of the previous Maldivian Democratic Party (MDP) administration.

Contracts awarded outside tender process

According to the report, Fenaka awarded 674 agreements worth MVR 2.24 billion. Many of these contracts were signed without public announcements, often by obtaining quotations from only two or three parties.

Key findings include:

Operational materials: Between 2021 and 2023, 674 agreements worth MVR 2.24 billion were signed for generators, cables, transformers, and water and sewerage projects. Of this, 65%, valued at MVR 1.37 billion, was outside competitive bidding.
Overpriced procurement: Goods and services worth MVR 8.82 million were acquired outside tendering rules, including unnecessary capital expenditure and overpriced agreements.
In-house projects: Fenaka undertook 57 building projects for utility services, costing MVR 1.07 billion. By 31 December 2024, 41 of these remained unfinished, with an estimated MVR 241 million still required.
Transportation costs: Fenaka overspent by MVR 47.55 million on transporting materials between islands.
Contract terminations: Of 78 agreements terminated, 48 involved advance payments totalling MVR 22.03 million that remain unrecovered.
Catering expenses: Catering bills exceeded the number of employees present, costing an extra MVR 14.23 million.

Changes in procurement rules

The audit noted that Fenaka’s procurement rules required a public tender for goods and services valued above MVR 225,000. However, the rules were altered to exempt foreign-sourced goods and services.

Scale of fraud

While more than 400 contracts were awarded through public tender, the AGO identified significant procurement fraud at Fenaka. The report highlighted specific losses, including: