Spokesperson says previous government’s Fenaka job placements had a damaging impact on the fishing industry

Government Spokesperson Mohamed Hussain Shareef (Mundhu) said on Saturday that one of the reasons behind the decline in the fishing industry is the Fenaka Corporation, a company that has long been the most financially difficult to sustain among state‑owned enterprises.

Responding to a journalist’s question at the press conference, Mundhu said the government is taking all necessary steps to reform Fenaka and overhaul the way the company has been structured and managed.

“It has always been financially difficult to sustain since then,” he said.

Mundhu noted that excessive recruitment in small islands during the previous administration had ripple effects across multiple sectors. He said the fishing industry was among those adversely affected.

“As I said, the fishing industry has been affected by Fenaka. It was the first trend of the last government to put more youth in Fenaka,” he said.

According to the spokesperson, some sailors and crew members have left fishing altogether, while some island fishing vessels have been rented out as supply boats for resorts.

His remarks come at a time when Fisheries Minister Ahmed Shiyam has also stated that politically motivated job allocations by companies have harmed the fishing industry. Shiyam recently said it has become increasingly difficult to find fishermen.

Meanwhile, Fenaka is currently offering a voluntary resignation scheme as part of its efforts to reduce staffing. Managing Director Mohamed Afeef Hussain said 97 employees have so far applied to leave under the offer, which provides four months’ salary.

Fenaka, which employs around 8,000 staff, opened the opportunity on the second day of this month. Applications closed at 2 pm last Sunday.

The company has described the decision as an important step to strengthen operations and improve services. Fenaka said reducing staff is necessary to make the corporation financially sustainable.

Interestingly, experts note that current government actions point towards the complete dismantling of Fenaka Corporation soon.