The Auditor General’s Office has revealed that over MVR 1.3 billion worth of contracts awarded by Fenaka Corporation between 2021 and 2023 were handed out without competitive bidding, exposing massive corruption during the administration of former President Ibrahim Mohamed Solih.
65% of Agreements Without Bids
According to the special audit report released last night, Fenaka signed 673 agreements for goods and services in just two years. Shockingly, 438 of these deals — representing 65 percent — were awarded without any public tender. Instead, Fenaka’s Direct Purchase Committee handpicked suppliers after collecting a few quotes, bypassing fair competition and transparency.
The audit further exposed that procurement rules at Fenaka had been deliberately shaped to exempt public tendering for foreign purchases above MVR 225,000. This loophole allowed questionable suppliers to exploit the system.
Inflated Prices and Huge Profit Margins
The report revealed that in procuring generators, cables, and transformers from abroad, suppliers were paid inflated rates with profit margins as high as 40 to 55 percent. Had Fenaka purchased these items directly, the state could have saved nearly MVR 287 million.
Irregular Rentals and Wasteful Spending
The audit also found that Fenaka bypassed procedures in renting spaces across islands, in some cases obtaining quotes from only a single party. The corporation spent MVR 12.1 million on rent and renovations, once again ignoring proper regulations.
Warnings Ignored by Solih Administration
Alarmingly, corruption at Fenaka was flagged as early as 2021. The Anti-Corruption Commission (ACC), under former President Mariyam Shiuna, sent a direct letter to President Solih warning that “activities conducive to corruption” were ongoing at Fenaka. While some cases were investigated, the Solih government took no action against the growing corruption within the company.
Calls for Action
The Auditor General’s report concludes with a clear recommendation: those responsible must be investigated and held accountable. The revelations, combined with earlier findings that Fenaka embezzled over MVR 2.2 billion during the Solih administration, reinforce public anger that the previous MDP government presided over the largest corruption scandal in Maldivian history.
