Business

Fenaka: Can settle MVR 3.2 billion owed to companies in two years

Published

5 months ago

28/12/2023

Fenaka Corporation, on Wednesday, has stated they forecast to settle MVR 3.2 billion owed to other companies within the next two years.

At a press conference held on Wednesday, Fenaka unveiled the details of the company’s debt.

The company’s Managing Director Muaz Mohamed Rasheed said the company has MVR 871 million debt in loans and MVR 3.2 million debt owed to other parties – placing the total debt of the company at MVR 4.16 billion.

Muaz alleged that the company’s debt increased so much in the past five years due to the negligence of the management.

Underscoring that the company was in discussion with the government seeking ways to settle the debt as soon as possible – he said the company has sought assistance from the government on the matter.

“Our company is in huge debt. For this, we express our sincere apologies to companies,” he added.

Fenaka said if they can manage the company’s cash flow, they can repay the money owed to other companies within two years without an additional plan.

The company added that the debt could be repaid even faster if they could manage their expenses.

As per Fenaka, the company’s largest debt is to Fuel Supplies Maldives (FSM) at MVR 1.8 billion, making up the majority of its MVR 3.2 billion debt.

Muaz said the company’s highest priority at the moment is to seek ways to repay the debt owed to other parties, particularly companies that Fenaka frequently needs to acquire services from.

Speaking further, Muaz said the company’s expense on salaries of employees had significantly increased over the past five years due to extreme hike in the number of employees.

He noted that the company which had 2,700 employees at the end of 2018 now has 8,100 employees.

Therewith, he said MVR 74 million is incurred monthly on average to pay the salaries of the company’s employees.

“When we paid the salaries the last time, we incurred MVR 79 million. However, MVR 5,3 million was saved after 904 employees were let go following the expiration of their contracts,” he emphasized.

Muaz accused of wrongdoings on various fronts when Fenaka was handed over to the new management.

Source(s): sun.mv

Business

CWEIC office to establish in Maldives, Janah as Chair

Published

2 days ago

16/05/2024

Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

Business

Dubai company awarded the development of SEZ

Published

6 days ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

Business

Over USD 713M generated attributing to revenue increasing by 3.7%

Published

1 week ago

11/05/2024

Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews