Utility Company Fenaka says by its estimation it can pay off 90 percent of the company's debts in the next four years.
Fenaka has the highest debts from the State Owned Enterprises and the Office of the President-elect recently said that the company's debt has now reached MVR 4 billion. Out of this MVR 3.2 billion is what the company owes to its vendors.
Speaking at a news conference today, Managing Director of Fenaka Ahmed Saeed Mohamed outlined the reasons why the company's debt ballooned.
He said that the company continued its projects despite the rise in the cost of materials after the COVID-19 pandemic. He said while the company was making revenue off water and sewerage installations when it was required by the law to give free installations to each citizen, company income was reduced.
The MD also highlighted that another reason for the sky-high debt was the increasing expenditure on employee salaries after the introduction of the minimum wage. He also said that the company had to spend on situations not in the contracts or not in the budget.
Saeed clarified that Fenaka was working to complete all its projects by next April and that once they are complete the Company would be able to start paying back its debts.
Saeed added that in the last five years, the company's income has increased by 40 percent.
