Government Plans FENAKA and RDC Closures, Seeks 51% of Dhiraagu

The government plans to dissolve FENAKA and Road Development Corporation, transfer their operations to other state companies and seek a controlling stake in Dhiraagu, President Mohamed Muizzu announced on 7 September.

Under the restructuring plan, FENAKA's utility services would be integrated into State Electric Company, while RDC's operations would move to Maldives Transport and Contracting Company.

Muizzu said the changes were intended to reduce duplicated staffing and expenditure. The announcement did not provide completion dates for the two dissolutions.

The President also said work had begun to raise the government's holding in Dhiraagu to 51 per cent and to make Maldives Water and Sewerage Company fully state-owned.

He said the proposed share purchases followed Cabinet deliberations. The President's Office did not disclose purchase prices, sellers' agreements or a transaction timetable.

Dhiraagu's published ownership

Dhiraagu's investor information currently lists BTC Islands Limited, part of Beyon, as its largest shareholder with 52 per cent.

The government holds 41.8 per cent, while the public holds the remaining 6.2 per cent. Moving from the published government holding to 51 per cent would require an increase of 9.2 percentage points.

Beyon is the parent company of Batelco and other digital and international businesses. Dhiraagu's investor page identifies it as one of the telecommunications group's international operations.

The company's corporate history records Batelco becoming its majority shareholder on 3 April 2013 following the sale of Cable & Wireless Communications' majority assets in its Monaco and Islands business unit.

The proposed government acquisition announced this month is separate from those completed ownership changes.

For MWSC, Muizzu said efforts were underway to reacquire shares previously sold to foreign entities. He described full state ownership as the government's objective.

The same briefing placed the FENAKA and RDC transfers within a wider restructuring programme for state-owned companies. The President attributed the decisions to the government's objectives for corporate governance, operating costs and service delivery.