Investigations into potential misuse of corporate funds at Tropik Wood Industries, the nation’s largest sawmill and wood chipping facility, have already led to significant personnel changes. Central to these inquiries is an allocation exceeding $50 million intended for a new sawmill, which has been marred by a lack of proper documentation.
The probe gained traction following the appointment of Ratu Rakuita Vakalalabure as executive chairman last year. His term has been extended until 2026, succeeding Vimlesh Kumar, who had served as CEO of Fiji Pine Group since 2020.
Ratu Rakuita indicated that structural issues were discovered at the originally proposed site for the new sawmill. An engineering report uncovered a spring of water beneath the area, which has resulted in unexpected alterations to the project that have led to increased costs and delays. Despite these setbacks, he expressed a commitment to ensuring the project is completed and begins production. To facilitate this, tenders will be issued.
Production and export activities remain unhindered, as Ratu Rakuita reassured stakeholders that operations are ongoing.
As part of the internal audit, over FJ$50 million in waste related to poorly planned projects and failed equipment orders has been identified. This investigation, conducted by forensic accountants, is probing the documentation issues surrounding these substantial financial outlays. Ratu Rakuita stated that internal disciplinary actions are underway to address these discrepancies, and those accountable will face consequences.
This is not the first investigation since Ratu Rakuita’s tenure began, as other corporate governance violations have also been noted and forwarded to the Director of Public Prosecution for further examination.
Fiji Pine Limited manages the forests and oversees the operations of Tropik Wood, which takes pride in providing the highest quality timber in the South Pacific.
Overall, while the situation presents significant challenges, the commitment from leadership to address issues of governance and fund management indicates a positive step towards accountability and operational improvement. This proactive approach serves to reinforce corporate integrity and may ultimately enhance the company’s reputation in the long run.
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