The FENAKA Corporation is currently facing significant operational challenges, the company's Managing Director Muaz Mohamed Rasheed said on Wednesday.
Addressing the media for the first time since assuming the role, Muaz said the company is burdened with a substantial debt amounting to MVR 4.1 billion.
Muaz noted that the company has hired more employees than it needs, with the employee count surging from 2,700 in 2018 to the current figure of 8,100. This has led to a significant increase in monthly salary expenditures, soaring from MVR 20 million to an average of MVR 74 million, he acknowledged.
Recently, the contracts of 904 employees were not renewed upon expiration, resulting in a payroll saving of MVR 5.3 million.
Muaz noted that when the last salary was paid, FENAKA spent a staggering MVR 79 million on payroll alone. He noted that the company would cease to exist if payroll is not reduced in the future. The company has already been forced to let some employees go due to this issue, he said.
