Muaz Mohamed Rasheed, Managing Director of Fenaka Corporation Limited, has stepped down following a year of service, citing significant financial challenges faced by the state utility provider.
In his resignation letter to President Dr. Mohamed Muizzu, shared later on social media platform X, Muaz outlined the severe financial difficulties confronting the company.
During his tenure, Fenaka, which supplies essential electricity, water, and sewerage services to numerous Maldivian islands, made notable strides in improving its financial standing. The corporation managed to reduce its inherited debt of MVR 4.3 billion by approximately one billion rufiyaa over the past year.
Muaz implemented significant cost-saving measures that slashed operational expenses by over MVR 160 million between October 2023 and October 2024. Despite these efforts, he acknowledged that these savings alone were insufficient to resolve the company’s financial crisis.
In his letter, Muaz stressed the fundamental issue: Fenaka’s inability to sustain operations solely on its revenue, which contradicts essential business principles. “The current financial situation makes it impossible to operate sustainably based on our revenue,” he stated, adding that proposals to address these challenges had been shared with relevant authorities.
His resignation comes at a critical juncture, as Fenaka faces mounting debt while striving to maintain uninterrupted essential services. Muaz expressed his concern about the corporation’s ability to continue operating under such constraints and concluded his letter with best wishes for Fenaka and the government’s future efforts.
