Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib has stated that it is evident the previous MDP administration awarded island water and sewerage projects to Fenaka Corporation with the sole intention of subcontracting them.

The Minister made these remarks while responding to questions from several members during today's sitting of the People's Majlis regarding delays in island water and sewerage projects.

Noting that awarding water and sewerage projects to Fenaka by the previous government was wrong, the Minister stated that projects across 20 islands were contracted to Fenaka at a time when the company had no prior experience or track record in executing such works.

He added that after these projects were awarded to Fenaka, they were immediately subcontracted to local private companies, which included firms that also lacked relevant experience.

"Subcontracting an entire project after it has been awarded to a state-owned enterprise is prohibited under state financial regulations. However, Fenaka subcontracted whole projects in violation of this rule," he said.

The Minister stated that advance payments were issued after handing over the works to those companies, and while they carried out some initial work, the projects had come to a complete halt by the time this administration took office.

He further stated that having no other way to proceed with these stalled projects, the contracts were terminated and handed over to MWSC. The Minister concluded that the delay in delivering water and sewerage services to the public was the direct result of the mess created by the previous administration.