President assigns FENAKA Corporation Limited as a Subsidiary of STO

President Dr Mohamed Muizzu has resolved to designate FENAKA Corporation Limited as a subsidiary of State Trading Organisation (STO) Public Limited, based on recommendations from his Cabinet. To facilitate this transition, STO will acquire 100% of the shares of FENAKA Corporation Limited. This decision was made following comprehensive deliberations on a proposal presented by the Ministry of Finance during the most recent Cabinet meeting.

This decision was made following consultations with the Cabinet to enhance the utility sector, ensuring efficient and standardised service delivery to the public. Additionally, it aims to strengthen the operations of FENAKA Corporation Limited and empower it financially.

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 allows STO to optimise 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 Ministry of Finance, 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. Following consultations with his Cabinet, the President has decided to complete the transfer of full ownership of FENAKA Corporation Limited to STO by the end of this year.