Fenaka Corporation Limited recorded a loss of MVR 547 million in 2024, while the money it owes to suppliers rose to more than MVR 3.5 billion, according to an audit report released by the Auditor General's Office.
According to the report on the audit of Fenaka's 2024 financial statements, the auditors raised doubts about the accuracy of the financial statements because the complete documents needed to verify the accounts were not provided.
The report states that by the end of 2024, the amount Fenaka owed suppliers for goods and services had risen to MVR 3.51 billion. This is 17 percent higher than the MVR 2.99 billion owed at the end of 2023.
Although Fenaka earned revenue of MVR 2.5 billion in 2024, its losses grew due to high administrative and other expenses. The company also recorded a loss of MVR 811 million in 2023.
The report also notes major discrepancies in the company's records of assets, stock and inventory. The audit further highlighted concerns over whether the company can continue to operate sustainably given its growing debts and expenses.
On 7 September, President Dr. Muizzu decided to dissolve Fenaka and hand over its operations to STELCO. STELCO has since taken over those services.
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