The Anti-Corruption Commission (ACC) has forwarded a case to the Prosecutor General's Office (PG Office) requesting charges against the former Managing Director of Fenaka Corporation, Ahmed Saeed, and the then Chief Accountant, Mohamed Masood. They are accused of violating company policies and providing undue benefits during the purchase of an ice plant established by Kaizan Investment in L. Maamendhoo.
Following an investigation into allegations of embezzlement in the transactions to purchase the ice plant, the ACC has requested the PG Office to press two charges against both individuals. These are the charge of abusing official capacity, and the charge of acting in a manner that deprives the state of a potential benefit or causes a loss to a benefit the state is entitled to receive.
Fenaka decided to purchase Kaizan Investment's ice plant during the company board's 18th general meeting held in 2023. The ACC stated that the decision to buy the ice plant was made despite knowing it was a loss-making project for the company, with the "internal rate of return" and "net present value" noted as highly negative. Furthermore, the ACC alleged that Ahmed Saeed Mohamed provided false information to board members while an agreement was already in place between the Fisheries Ministry and Fenaka Corporation to build an ice plant in L. Maamendhoo. Specifically, the ACC noted that Saeed falsely claimed that purchasing Kaizan Investment's ice plant would change the government's policy regarding the ice plant being built under the agreement with the Fisheries Ministry.
Regarding Masood, who was also forwarded for prosecution in this case, the ACC stated that the investigation revealed the valuation price he submitted for the ice plant was higher than the market value. The ACC also noted that although Fenaka had the capability to conduct valuations for assets like ice plants, they did not attempt to determine the market value, but instead prepared a deceptive valuation using the prices submitted by the seller of the ice plant.
