Investigations are underway regarding the allegations of misappropriation of corporate funds at Fiji’s largest sawmill and wood chipping facility, Tropik Wood Industries. Central to these inquiries is a significant allocation of over $50 million designated for a new sawmill, with concerns raised over the lack of appropriate documentation.
The scrutiny follows the leadership change when Ratu Rakuita Vakalalabure was appointed as the executive chairman last year, succeeding Vimlesh Kumar, who had served as the chief executive officer for Fiji Pine Group since 2020. Ratu Rakuita’s term has been extended until 2026.
During the investigation, geotechnical challenges were discovered at the originally proposed site for the new sawmill, including an engineering assessment that identified a spring of water beneath the location. This issue has resulted in several contract amendments, incurring additional costs and delays for the project. However, Ratu Rakuita expressed optimism that the sawmill will ultimately be completed and operational, with plans to issue tenders moving forward as production and export activities continue unimpeded.
Internal audits have revealed a waste of over FJ$50 million linked to mismanaged projects and deviations from equipment specifications, leading to financial losses for the company. This prompted a forensic accounting investigation, which uncovered a lack of documentation for substantial expenditures. Ratu Rakuita confirmed that internal disciplinary actions are in process, emphasizing a commitment to addressing and resolving the issues.
This is the second investigation associated with the Drasa mill in Lautoka during Ratu Rakuita’s tenure. Additionally, other violations of corporate governance have been identified and escalated to the Director of Public Prosecutions for further evaluation.
Fiji Pine Limited, which oversees forest management and collaborates with land leaseholders, is the parent company of Tropik Wood, which boasts a reputation for producing the highest quality timber in the South Pacific.
The ongoing investigations serve as a reminder of the importance of transparency and accountability within corporate governance. The leadership’s proactive measures, including thorough audits and disciplinary action, signal a commitment to rectifying issues and promoting a more robust framework for future projects, potentially restoring trust among stakeholders and the community.
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