The Civil Court has ruled that Fenaka Corporation must pay MVR 7 million within 30 days to Kaizan Investment, a private company tied to a corruption case involving the state utility’s former managing director, Ahmed Saeed.
The case centers on the controversial purchase of an ice plant in Laamu Atoll Maamendhoo. Fenaka signed an agreement with Kaizan Investment on December 7, 2023, for the facility, which was valued at MVR 11.3 million. However, according to the verdict, Fenaka failed to pay MVR 7.2 million of the agreed amount.
Kaizan filed the lawsuit seeking MVR 7.9 million in total, which included the outstanding payment, MVR 580,155 in damages for delayed settlement, and MVR 100,000 to cover litigation costs.
The court rejected the claims for damages and legal fees but upheld the core demand, ordering Fenaka to pay the outstanding MVR 7.2 million within 30 days. The company had requested a 12-month installment plan, arguing that it could not settle the payment in one lump sum. That request was denied.
The court ruling comes at a time when Fenaka’s former top executives face corruption charges over the same ice plant deal. In July, prosecutors charged Ahmed Saeed, the former managing director, and Mohamed Masood, the company’s former chief accountant, with abuse of office.
According to the prosecution, Fenaka had already reached an agreement with the fisheries ministry in April 2023 to construct a new ice plant in Maamendhoo. Despite this, the company moved forward with purchasing an existing facility from Kaizan Investment. Prosecutors argue the purchase was made without the approval of the tender evaluation committee.
Court documents revealed that Saeed attended a board meeting on September 7, 2023, where the Kaizan purchase was discussed. Prosecutors allege that he did not disclose that Fenaka was already building an ice plant on the same island. Later that same day, the agreement with Kaizan was signed, enabling a transfer of MVR 11.3 million to the private company.
The case has drawn public attention as it highlights governance issues within state-owned enterprises. With the Civil Court ruling now in place, Fenaka must clear the outstanding payment even as legal proceedings continue against its former leadership.
