Muaz Mohamed Rasheed has stepped down as the Managing Director of Fenaka Corporation. In his resignation letter addressed to President Dr Mohamed Muizzu, Muaz stated that he had carried out his duties with dedication but faced significant challenges during his tenure.

Muaz noted that despite efforts to maintain uninterrupted services, Fenaka has been grappling with a severe financial crisis. He revealed that the company’s expenses far exceed its revenue, making it impossible to operate sustainably.

During his one-year tenure, Muaz claimed to have improved operations and saved over MVR 160 million in operational expenses between October 2023 and October 2024. However, he admitted that reducing costs alone was not enough to address the company’s debt, which stands at MVR 4.3 billion.

Efforts to resolve the crisis, including submitting a recovery plan to the authorities and seeking support from the Finance Ministry, yielded no results. Muaz also highlighted issues such as overstaffing and inadequate maintenance of power, water, and sanitation services in several communities.

He further stated that the company’s financial struggles had led to delays in paying staff salaries for October and November, a situation unprecedented in recent years.

Muaz concluded that the operational challenges had reached a point where the company could no longer provide sustainable services. As a result, he resigned, citing a lack of viable solutions to improve Fenaka’s financial condition.