President Dr Mohamed Muizzu has decided to designate Fenaka as a 100% subsidiary of State Trading Organisation (STO).

The President’s Office said that the president made the decision after discussing the paper presented by the finance ministry at the cabinet meeting held on Sunday.

The decision was taken in consultation with the cabinet to strengthen the utility sector and to strengthen the management and financial empowerment of the Fenaka with better efficient delivery of service to the people.

The President's Office said that the decision includes amendments to the articles of association, strengthening governance and alignment of the company with best practices as practiced in the STO, streamlining business activities, and implementing good practices.

The President's Office further added that STO has been given the authority to determine the number of employees at Fenaka. In doing so, Fenaka will consider how to relocate employees without laying off as many employees as possible.

The President also decided to form a committee comprising representatives of the Ministry of Finance, Privatization and Corporatization Board and STO to carry out the process and complete the conversion of Fenaka to a 100% subsidiary of STO.