Fenaka Corporation has responded to the corruption allegations made in an article published by Mihaaru news titled “2 Kunfunyege Corruption: Zero Tolerance Koba?” based on the findings by the Anti Corruption Commission (ACC).
The article published by Mihaaru journalist Fazeena Ahmed on 9th March has generated a lot of attention. The article mentions several allegations against Fenaka Corporation stated in the report sent to President Ibrahim Mohamed Solih by ACC.
The article mentions that several policies within the corporation could be a gateway to corruption acts. Fenaka employees and its Managing Director Ahmed Saeed signed a ‘Zero Tolerance to Corruption’ agreement in July, 2019. However, ACC has received several complaints from Fenaka employees regarding the corruption acts by its Managing Director Ahmed Saeed.
The article further states that ACC started investigating these complaints and have updated President Solih regarding the current state of the corporation. The investigations revealed that some acts and policies within the corporation are leading to corruption.
Moreover, ACC has received the most complaints regarding Fenaka in the last 9 years which includes 79 complaints last year alone. The report also stated that ACC has informed Fenaka to re-evaluate its policies but has not noticed a considerable change in its policies so far.
Furthermore, ACC has expressed concerns regarding the increasing number of complaints made against Fenaka corporation and majority of these complaints are regarding the policies within the corporation being used as loopholes to corruption.
The ACC report highlighted policy regarding procurement of goods and services in particular. This includes the amendment made in 2019 to the person in charge of approving such procurements and the financial limit of procuring these goods and services. However, the policy regarding procurement of goods and services from abroad via a bidding procedure was not amended.
This amendment has led to one person being in charge of the procurement of goods and services and significant influence in making major decisions within the corporation. ACC believes that this is too much power and influence assigned to just one person and that person should be made liable in answering questions regarding the decisions taken within the corporation. Moreover, ACC recommends auditing the recruitment and procurement process within Fenaka Corporation.
Fenaka responded to these allegations made in the ACC report published in Mihaaru article by stating that its new Board of Directors in December of 2018 has revised the changes proposed by its previous Board of Directors to increase the procurement limit to MVR 10 million.
Moreover, Fenaka stated it also amended the previous regulations regarding the procurement of goods and services from abroad via a bidding procedure which requires a minimum of 3 quotations and approval from its Managing Director to procure goods and services worth MVR 10 million.
The new amendment as of 1st August 2019 by Fenaka’s new Board of Director includes a mandatory evaluation and approval from its Direct Purchasing Committee to procure goods and services ranging between MVR 225,000 to MVR 5 million. Furthermore, any procurements above MVR 5 million will require an evaluation and approval from its Board of Directors.
Fenaka stated that these changes were made to avoid unnecessary bureaucracy and to conveniently provide its customers with the best possible goods and services depending on the current situation. Moreover, it is a way to minimize the influence and power one person has over the corporation’s major decisions.
Fenaka requested personnels to enquire and get an official response from the corporation regarding any allegations before publishing it publicly. Fenaka will not withhold any information from any media regarding its policies and pleaded with the media not to spread baseless allegations against the corporation in its statement released today.