Corporate Scandal Unfolds at Fiji’s Biggest Sawmill

Investigations are underway at Tropik Wood Industries, the nation’s largest sawmill and wood chipping facility, as allegations of mismanagement of corporate funds emerge. Central to these investigations is a substantial allocation exceeding $50 million for a new sawmill, alongside a troubling lack of appropriate documentation supporting its expenses.

The scrutiny follows the appointment of Ratu Rakuita Vakalalabure as executive chairman last year, whose term has recently been extended until 2026. He took over from Vimlesh Kumar, who ascended to the position of CEO for Fiji Pine Group in 2020.

Amid these challenges, Ratu Rakuita revealed that Geotech structural issues at the initially proposed sawmill site contributed to delays and increased costs. An engineering report exposed a spring of water beneath the area, necessitating contract amendments. Despite these setbacks, Ratu Rakuita expressed determination to complete the project and bring it into production, announcing plans to call for tenders to move forward.

Internally, a recent audit uncovered over FJD 50 million in mismanaged company funds due to inadequately planned initiatives and incorrect equipment specifications. Forensic accountants are currently investigating the insufficient documentation surrounding significant financial outflows. Ratu Rakuita confirmed that internal disciplinary measures are being enforced against those involved, along with other governance breaches being escalated to the Director of Public Prosecution.

Fiji Pine Limited, the parent organization, manages diverse forestry operations and collaborates with land lease holders to ensure the collective profitability of its affiliated companies. Tropik Wood focuses on managing sawmill operations and takes pride in delivering premium timber across the South Pacific.

The unfolding investigations shed light on the need for improved corporate governance and accountability within the organization. With new leadership at the helm and a commitment to addressing these issues, there is hope that Tropik Wood Industries can navigate these challenges, ultimately resulting in a more sustainable and reliable business model.