President Dr. Mohamed Muizzu has today announced that the Cabinet has decided to dissolve Fenaka and the Road Development Corporation as the government continues to right-size operations to further cut costs.
Fenaka is the company that provides utility services in the inner islands.
In a press conference held at his Office, the President said that Audit reports have established how much the previous government had misused the company. He said that the government tried to strengthen the company's operations by taking the necessary actions.
However, he conceded that such reforms cannot be implemented sustainably and that technical experts have also attested to this outcome.
The President said that after much thought, the Government has now decided to dissolve Fenaka and merge its resources with the State Electric Company Stelco. He added that once the merger is completed, Stelco will provide utility services to the whole country.
Explaining the rationale for dissolving RDC, President Muizzu said that the company is mainly handling road construction works and that currently Maldives Transport and Contracting Company MTCC is also carrying out road construction and other construction projects.
He said that the decision to dissolve RDC and merge it with MTCC was taken to reduce duplicate companies and to provide construction services robustly and efficiently. He added that this merger would also increase the Government's share in MTCC which would prove beneficial to the public.
He also added that these changes will "right size" companies, recruit as many employees as the company needs and reduce the number of unnecessary employees.
