FENAKA Corporation to Become Subsidiary of STO

News

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.

This decision, aimed at enhancing the efficiency and financial stability of the utility sector, was made following a proposal presented by the Ministry of Finance during the most recent Cabinet meeting.

Under this new directive, STO will acquire 100% of the shares of FENAKA Corporation Limited, marking a significant step towards consolidating and standardising service delivery across the nation. The move is expected to bolster FENAKA’s operations and empower the corporation financially, ensuring that it can continue to provide essential utilities to the public effectively.

To facilitate this transition, STO will undertake necessary amendments to its general rules and regulations and will implement governance reforms within the STO group, adhering to best practices. The company will also streamline business processes and implement necessary changes independently to ensure a smooth integration.

In alignment with the Administration’s core policies, this decision also opens up opportunities to optimise FENAKA's workforce. Rather than resorting to employment terminations, STO will explore reassignment opportunities for employees, ensuring job security while improving operational efficiency.

To oversee the transition, a committee comprising representatives from the Ministry of Finance, the Privatisation and Corporatisation Board (PCB), and STO will be established. This committee will be responsible for sharing information and coordinating efforts to implement the changes, with the goal of completing the transfer of full ownership of FENAKA Corporation Limited to STO by the end of this year.