Fenaka Saeed sentenced to prison for 4 years

Ahmed Saeed Mohamed, the former Managing Director of state utility company Fenaka, has been sentenced to four years in prison by the Criminal Court on Sunday for corruption.

The conviction stems from an MVR 848,000 contract between Fenaka and Blazon Inc. An investigation by the Anti-Corruption Commission (ACC) revealed that Blazon Inc. was paid by Fenaka before completing the contracted work and without proper verification of completion.

In December 2024, Saeed and Mariyam Dheena Solih, Fenaka’s procurement head at the time, were charged with misuse of official authority. The Criminal Court found Saeed guilty of the charge on Sunday afternoon, leading to his four-year jail sentence.

Saeed faces another ongoing court case, alongside Mohamed Massood, former chief accountant, concerning alleged corruption in the purchase of an ice plant. They are accused of two counts related to acquiring Kaizaan's ice plant in 2023. The prosecution alleges that Saeed, despite attending the board meeting where the purchase was approved, failed to disclose that Fenaka had initially planned to develop the Maamendhoo ice plant internally. Saeed is charged with abuse of official position in this case as well, which is still pending.

This corruption conviction comes just three days after a special audit report from the Auditor General’s Office (AGO) highlighted widespread financial irregularities within Fenaka, sparking public outcry. Some of the serious issues flagged in the audit include:

• MVR 1.4 billion in procurement contracts awarded without competitive bidding.

• Procurement of refurbished generator sets, passed off as new, for MVR 17.4 million (actual value MVR 2.9 million).

• Equipment procurement before contracts were officially signed.

• MVR 105 million in delivery contracts awarded to a supplier lacking a ship for transport.

• Contracts awarded to companies with links to Saeed’s family.

• Multiple no-bid contracts awarded to companies associated with the MDP.

President Dr. Mohamed Muizzu has ordered an investigation into these cases and called for appropriate action. Despite these developments, Saeed maintains his innocence, insisting he complied with all rules and regulations, and has criticized the audit report as "rushed," "politically motivated," and "misleading."

Fenaka, currently burdened with significant debt, has a history of corruption allegations across various Maldivian administrations, contributing to substantial financial strain on the government.