Major (Retired) Mohamed Najah has been appointed as the new Managing Director of Fenaka Corporation, following the resignation of Muaz Mohamed Rasheed.

The Privatisation and Corporatisation Board (PCB) announced Najah’s appointment on Monday, adding him to Fenaka's Board of Directors. His appointment comes a day after Muaz stepped down, citing the company’s financial challenges.

In his resignation letter to President Dr Mohamed Muizzu, Muaz detailed the difficulties Fenaka faced under his leadership, including a financial crisis and mounting debt of MVR 4.3 billion. Despite saving over MVR 160 million in operational costs during his one-year tenure, Muaz stated that reducing expenses alone could not resolve the company’s financial issues.

He noted that Fenaka’s revenue was insufficient to cover operational costs, which were further exacerbated by overstaffing and inadequate maintenance of essential services such as power, water, and sanitation in many areas. Efforts to secure support from the Finance Ministry and implement a recovery plan were unsuccessful.

Muaz also highlighted delays in paying employee salaries for October and November, an issue he described as unprecedented in Fenaka’s recent history. Concluding that the company’s operational situation was unsustainable, Muaz resigned, stating that he did not see a viable path forward.