President Dr. Mohamed Muizzu has decided to designate FENAKA Corporation Limited as a subsidiary of State Trading Organisation (STO) Public Limited, based on recommendations from his Cabinet. This decision was made following comprehensive deliberations on a proposal presented by the Finance Ministry during the most recent Cabinet meeting.
According to the President's Office, this decision aims to enhance the utility sector, ensuring efficient and standardized service delivery to the public. Additionally, it aims to strengthen the operations of FENAKA Corporation Limited and empower it financially.
To facilitate this transition, STO will acquire 100 percent of the shares of FENAKA Corporation Limited. For the decision to come into effect, STO will implement the necessary amendments to the company’s general rules and regulations, as well as reforms to strengthen governance within the STO group in accordance with best practices. The company will also streamline business processes and implement changes at its sole discretion.
This decision will allow STO to optimize the workforce of FENAKA, exploring opportunities to reassign employees to other areas rather than terminating their employment, in alignment with the administration’s core policies.
A committee comprising representatives from the Finance Ministry, the Privatisation and Corporatisation Board (PCB), and STO will be established to streamline and share information regarding the timeline of the efforts leading to the implementation of the change. The president has decided to complete the transfer of full ownership of FENAKA Corporation Limited to STO by the end of this year.
