Investigations are underway into allegations of mismanagement of corporate funds at Fiji’s largest sawmill and wood chipping facility, Tropik Wood Industries. The scrutiny centers around the allocation of more than $50 million intended for a new sawmill, which reportedly lacked proper documentation.
This development follows the appointment of Ratu Rakuita Vakalalabure as the executive chairman, a position he took up last year and was recently reappointed to serve until 2026. He succeeded Vimlesh Kumar, who had been the CEO of Fiji Pine Group since 2020.
Ratu Rakuita disclosed that geotechnical issues were discovered at the initially proposed site of the new sawmill. An engineering report indicated the presence of a spring of water beneath the site, leading to delays and escalating costs due to several contractual variations. Nevertheless, he emphasized a commitment to moving the project forward, stating that tenders will be issued for its completion. In the meantime, production and export operations will continue unabated.
The internal audit revealed significant misuse of company funds, exceeding FJ$50 million, attributed to poorly planned projects and deviations from equipment specifications, which caused further financial loss. Ratu Rakuita indicated that the investigation, conducted by forensic accountants, identified a lack of documentation concerning substantial withdrawals from the company’s accounts. Internal disciplinary actions are currently in progress to address these issues.
This incident marks the second investigation involving the Drasa mill in Lautoka since Ratu Rakuita’s appointment. Other governance breaches have also been identified and reported to the Director of Public Prosecutions for appropriate action. Fiji Pine Limited, the parent company, oversees the management of forests and collaborates with land leaseholders while ensuring the group’s profitability. Tropik Wood is recognized for its commitment to delivering the highest-quality timber in the South Pacific.
In light of these developments, there is hope that the resolutions will lead to improved governance and transparency within the organization, ultimately supporting the company’s long-term sustainability and reinforcing its reputation in the timber industry.
Leave a comment