Fenaka: 107 employees terminated with redundancy packages

Total 107 employees have been terminated from the Fenaka Corporation under the redundancy program, according to the state utility company.

A spokesperson from Fenaka told Sun on Sunday morning that total 107 employees had left the corporation with redundancy packages by the deadline.

The state utility company had opened the opportunity for employees to voluntary resign with a four-month salary payout on June 2 – as part of efforts to reduce its 8,000-strong workforce.

Back in July, Fenaka Corporation’s managing director Mohamed Afeef Hussain told Sun that 108 employees had applied to leave the company under the redundancy program. He also denied allegations some of the employees didn’t receive the promised payout, stating that all employees received redundancy packages as agreed.

Afeef describes the redundancy program as a necessary measure to improve the efficiency of the company’s operations, and expand its services.

He said that the revenue the company generates isn’t enough to cover the salaries of 8,000 employees, and that reducing its workforce is therefore necessary to ensure the sustainability of the company’s operations.

He added that Fenaka also faces logistical challenges in carrying out projects in islands, leaving many employees idle.

The Finance Ministry had ordered state-owned enterprises to reduce employees by 33 percent as a cost-cutting measure back in April. The Privatization and Corporatization Board (PCB) subsequently instructed SOEs to get it done within three months.

Fenaka is among SOEs that have been plagued by years with allegations of corruption, including engaging in mass hirings to win votes for the government in elections.