A special audit has revealed that Fenaka Corporation awarded MVR 1.3 billion worth of contracts without competitive bidding between 2021 and 2023.

According to the Auditor General’s Office, Fenaka spent a total of MVR 2.2 billion during this period to procure generator sets, cables, transformers, and equipment for water and sewerage projects under 673 contracts. Out of these, 438 contracts - 65 percent - were awarded outside normal procedures, without public announcements, and through direct negotiations by the company’s Direct Purchase Committee.

The largest expenditure was on the purchase of power cables, amounting to MVR 544 million. The audit also noted that Fenaka’s procurement regulation allows direct purchases only for projects worth up to MVR 225,000 (excluding GST), with higher-value projects required to go through public bidding. However, the audit found that in 48 percent of the cases, contracts were awarded without valid justification under emergency clauses.

The company Saase received the highest value of contracts awarded without bidding, securing eight projects worth MVR 149 million.

Other issues highlighted include irregularities in leasing and renovating properties across islands, where Fenaka spent MVR 12.1 million in violation of regulations.

The audit also uncovered major discrepancies in the purchase of generators. While Fenaka reported buying new generators valued at MVR 2.9 million, Customs documents revealed that the equipment imported were refurbished units. Fenaka had spent MVR 17.4 million on these generators - 504 percent higher than their actual value.

The report recommends that action be taken against those responsible for the violations.