Investigations into alleged misuse of corporate funds are underway at Tropik Wood Industries, the largest sawmill and wood chipping facility in the country. The focus is on an allocation exceeding $50 million for a new sawmill that lacks proper documentation.
These developments have followed the recent appointment of executive chairman Ratu Rakuita Vakalalabure, who succeeded Vimlesh Kumar last year. Ratu Rakuita’s term has now been extended through 2026.
While addressing the challenges of the new sawmill project, Ratu Rakuita announced that geotech structural issues had been discovered at the planned site. An engineering report revealed the presence of a spring of water beneath the proposed location, leading to various contract modifications that have increased both time and expenditure. He assured stakeholders, “We will work to ensure it is completed and comes into production.” To facilitate progress, he indicated that tenders would be called soon, and production and export activities at the facility will continue without interruption.
An internal audit has unveiled over FJ$50 million wasted due to poorly planned projects and deviations from equipment specifications. Following these findings, a forensic accounting investigation was launched into the spending discrepancies. Ratu Rakuita emphasized that internal disciplinary proceedings are ongoing, and appropriate actions will be taken against those involved.
This marks the second investigation linked to the Drasa mill in Lautoka since Ratu Rakuita’s appointment. He confirmed that other breaches of corporate governance have been identified and forwarded to the Director of Public Prosecution for further examination.
Fiji Pine Limited oversees Tropik Wood as well as managing local forests and land leaseholders, aiming for sustainable profitability across its group of companies. Tropik Wood takes pride in providing some of the best-quality timber in the South Pacific.
This situation, while serious, opens the door to much-needed change and accountability within Tropik Wood Industries. The commitment shown by Ratu Rakuita to address these issues can lead to stronger governance and more efficient management practices in the future, ultimately benefiting the company’s stakeholders and the community at large.
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