Maldives Announces Sweeping State-Owned Enterprises’ Overhaul

In a major move to reform state-owned enterprises (SOEs), reduce government expenditure, and curb systemic corruption, President Dr Mohamed Muizzu has announced the dissolution of Fenaka Corporation and the Road Development Corporation (RDC). 

The respective operations of the two state-owned firms will be merged into larger, more financially stable state entities. Additionally, the Agro National Corporation (AgroNAT) is set to undergo restructuring to become a subsidiary of the Maldives Industrial Fisheries Company (MIFCO).

Speaking at a press conference held at the President’s Office, President Muizzu detailed that these decisions are the result of rigorous evaluations by technical experts aimed at eliminating the duplication of public services and streamlining infrastructure development under a more robust and sustainable framework.

The Dissolution of Fenaka Corporation

Under the new reform directive, Fenaka Corporation—which has historically provided water, sewerage, and electricity services to the islands outside of the capital—will be dissolved. Its entire utility portfolio, including electricity services across all islands, will be transferred to the State Electric Company (STELCO).

President Muizzu cited a damning report from the Auditor General’s Office exposing severe financial mismanagement and corruption within Fenaka during the previous administration. At the time of the merger announcement, the Anti-Corruption Commission (ACC) was actively investigating 161 cases related to the company, resulting in directives for Fenaka to recover MVR 21.4 million. The audits also highlighted procurement irregularities under the administration of former President Ibrahim Mohamed Solih, which previously led to the imprisonment of Fenaka’s former Managing Director, Ahmed Saeed.

Beyond corruption, Fenaka has struggled with severe operational inefficiency, driven largely by a heavily bloated workforce of over 8,000 employees. The company recently acknowledged that its unsustainable payroll had severely hindered its ability to cover basic operational costs, including securing funds for fuel, generator spare parts, and other essential medical and utility supplies.

After deep reflection and consultation, the government has decided to dissolve Fenaka and merge it with STELCO. Once this process is completed, STELCO will provide services across the entire Maldives,” President Muizzu explained.

RDC Merged with MTCC to End Duplication

In a parallel move, President Muizzu announced the dissolution of the Road Development Corporation (RDC), which was established six years ago to manage island road networks. All responsibilities, assets, and ongoing asphalt-paving projects currently handled by RDC will be transferred to the Maldives Transport and Contracting Company (MTCC).

The President emphasised that maintaining separate state entities to perform identical functions represents an unnecessary drain on the national treasury.

RDC is primarily a road construction company. MTCC is also a road construction company, as well as an infrastructure company. There is a lot of duplication and high expenditure. Therefore, this change is being made to deliver infrastructure projects through a more efficient, unified system,” he explained.

AgroNAT Restructured Under MIFCO

The government's consolidation strategy also extends to the agricultural sector. AgroNAT, which was established in 2020 as a subsidiary of the Maldives Fund Management Company (MFMC) to commercialise local farming, will be restructured as a subsidiary of MIFCO.

According to President Muizzu, aligning AgroNAT with MIFCO will create vital synergies between the country's fisheries and agricultural industries, expand agricultural businesses, and accelerate national food security targets.

The restructuring is also expected to facilitate the sustainable completion and management of the new local market currently under construction in the capital city of Male'. The President confirmed that the market project is slated for completion by 10 December of next year.

To ensure that location is run sustainably and managed effectively for the maximum benefit of businesses and the public—without requiring ongoing government subsidies—we are handing it over to MIFCO, the President said.

The sweeping reforms mark a definitive shift in the administration's economic policy, signaling a commitment to fiscal discipline, structural efficiency, and zero tolerance for the operational redundancies that have historically burdened the Maldivian public sector.