Government to Dissolve Fenaka and Transfer Operations to STELCO

The government has decided to dissolve Fenaka Corporation and transfer its operations to the State Electric Company Limited (STELCO), President Dr. Mohamed Muizzu has announced, citing financial sustainability concerns and the need to consolidate state-owned services.

Speaking at a press briefing at the President’s Office, the President said the decision followed consultations and attempts to reform Fenaka’s operations. According to the President, expert assessments concluded that the company was no longer financially sustainable.

He said STELCO would assume Fenaka’s functions once the transition was complete, as part of the government’s plan to bring electricity services across the Maldives under a single operator.

The President also announced plans to dissolve the Road Development Corporation (RDC) and transfer its operations to the Maldives Transport and Contracting Company (MTCC). He said maintaining multiple state companies with overlapping responsibilities had increased public expenditure.

The proposed changes are intended to consolidate operations and improve the efficiency of service delivery and development projects.

Fenaka’s financial position is a central concern. The company employs more than 8,000 staff and has previously said its wage bill places pressure on funds needed for fuel, generator spare parts and other operational requirements.

The President also cited audit findings concerning alleged irregularities during the previous administration as part of the rationale for the decision.

The announcement did not set out a completion timetable or explain how employees, outstanding liabilities and existing contracts would be handled. Arrangements for maintaining services during the transfer will be a key part of the implementation process.