The State Trading Organization (STO) has recovered MVR 1 billion from the outstanding debt owed by Fenaka Corporation, according to STO Chief Executive Officer and Managing Director Shimad Ibrahim.
Speaking during STO’s Annual General Meeting held at DusitD2 Feydhoo Maldives on Tuesday night, Shimad said the repayment came through coordinated efforts involving President Dr. Mohamed Muizzu, the President’s Office, and the Ministry of Finance and Public Enterprises.
For years, shareholders have repeatedly raised concerns about unpaid dues owed to STO by state-owned companies, particularly Fenaka. Addressing those concerns, Shimad noted that the recent payment marks a significant step toward easing the financial pressure on the company.
Longstanding Fuel Payments Issue
Fenaka’s debt mainly accumulated due to unpaid fuel supply bills owed to STO over several years. During an earlier interview with local media, Shimad had revealed that Fenaka’s total outstanding balance stood at approximately MVR 1.9 billion.
He also previously stated that Fenaka had not made fuel-related payments to STO since 2021, creating financial strain for the state trading company. The issue had become one of the key financial concerns highlighted by shareholders during annual meetings.
Now, with more than half of the debt reportedly settled, STO appears to be moving toward improved financial stability. Still, questions remain about how the remaining balance will be addressed and whether a long-term repayment mechanism will be introduced.
Shareholder Concerns Over Hulhumale’ Hotel Project
During the AGM, Shimad also responded to shareholder concerns surrounding STO’s Hulhumale’ hotel development project, an issue that has generated discussion in recent years.
According to him, the matter has now been resolved through the allocation of a 41,000-square-foot land plot near Hiyaa Tower 16 in Hulhumale’ Phase Two. The land was reportedly provided as compensation for costs associated with the stalled or disputed project.
The update appeared aimed at reassuring shareholders that unresolved corporate matters are being actively addressed by the company’s leadership.
STO Promises Continued Transparency
Shimad emphasized that STO remains committed to listening to shareholder feedback and finding practical solutions to ongoing concerns.
He assured attendees that the company continues to take complaints, suggestions, and shareholder concerns seriously as it works to strengthen operations and maintain financial stability.
The repayment from Fenaka is likely to be viewed as a positive development for STO, particularly at a time when state-owned enterprises are under increased scrutiny regarding financial management and accountability.
