A special audit has revealed that senior officials of the Maldivian Democratic Party (MDP) directly and indirectly received undue benefits from the large-scale corruption scandal at Fenaka Corporation.

The audit report on Fenaka’s procurement and financial operations, released by the Auditor General’s Office on Thursday, uncovered extensive violations of laws and regulations. These included the awarding of projects without competitive bidding and the purchase of goods through irregular processes.

According to the report, the value of illegal transactions carried out within Fenaka is estimated to exceed MVR 2.2 billion. The findings indicate that hundreds of millions of rufiyaa were channelled to businesses linked to MDP figures, with party leaders among those who benefitted.

MVR 111 million to Hussain Shaheem’s company

One of the most notable beneficiaries identified in the report is former Henveiru South MP Hussain Shaheem, widely known as Andhun Hussain, a key MDP parliamentarian during the last term.

The audit found that between 2021 and 2023, Fenaka purchased crude oil without formal agreements, deliberately avoiding competitive bidding. Instead, daily purchase orders were issued at inflated rates, with the intention of favouring specific parties.

During this period, Fenaka purchased crude oil worth MVR 127.76 million. Of this, MVR 15.8 million was purchased through state-owned firms MTCC and STELCO, while the remaining MVR 111.95 million was procured via Sirius Enterpris, a company owned by Andhun Hussain.

Indirect benefits to Solih’s campaign

The audit further highlighted that a company benefitting from Fenaka’s irregular transactions had donated MVR 2 million to the former President Ibrahim Mohamed Solih’s presidential campaign.

Fenaka is reported to have signed 439 contracts without competitive bidding, 10 of which were with Azzrova, valued at MVR 107.5 million. The report stated that most of these contracts were awarded at rates significantly higher than market value.

Financial statements from Solih’s campaign show that Azzrova deposited a total of MVR 2 million into his campaign account across 10 transactions, each valued at MVR 200,000.

Media reports linked to the Fenaka scandal have alleged that funds obtained through these irregular dealings were distributed among government officials of the time. However, these allegations have yet to be independently verified.

Responsibility beyond Fenaka’s leadership

The audit suggested that the corruption at Fenaka cannot be attributed solely to the company’s leadership. Instead, it concluded that negligence – or deliberate actions – at the government level played a key role in enabling the scandal.

The findings point to direct and indirect involvement of MDP leaders in facilitating and benefitting from the corruption, raising fresh questions about political accountability in one of the country’s largest financial scandals in recent years.