Significant changes are underway at Tropik Wood Industries, the nation’s largest sawmill and wood chipping facility, as investigations unfold regarding allegations of misuse of over $50 million in corporate funds. The inquiry centers on the funding earmarked for a new sawmill and the concerning absence of adequate documentation.
These developments have transcribed into organizational shifts, particularly following the appointment of Ratu Rakuita Vakalalabure as executive chairman last year. His tenure has recently been extended to 2026. Ratu Rakuita succeeded Vimlesh Kumar, who had served as CEO of Fiji Pine Group since 2020.
In addressing the issues surrounding the proposed new sawmill, Ratu Rakuita highlighted the discovery of geotech structural anomalies at the initial site, including a subsurface spring of water which posed challenges to the project. He noted, “Several variations to the initial contracts have cost the project in time and money,” while ensuring that efforts would continue to see the project through to completion.
Additionally, Ratu Rakuita confirmed that tenders would soon be called to advance the project while maintaining production and export operations in the interim.
An extensive internal audit has unveiled more than F J$50 million in wasted company funds attributed to poorly executed projects and failures in adhering to equipment specifications, leading to financial losses. This audit prompted a forensic investigation due to insufficient documentation concerning the utilization of substantial sums from company accounts.
Ratu Rakuita stated that internal disciplinary actions are in progress, emphasizing, “We will ensure those involved are dealt with,” and noted that further breaches of corporate governance have been escalated to the Director of Public Prosecution for additional scrutiny.
Fiji Pine Limited, the parent organization, oversees forest management, collaborates with land lease stakeholders, and evaluates the profitability of its group companies. Tropik Wood specifically manages the sawmill and associated manufacturing processes, known for producing the highest quality timber in the South Pacific.
This investigation, while undoubtedly challenging, represents an opportunity for Tropik Wood to emerge stronger and more accountable, reinforcing its commitment to ethical corporate governance and financial integrity. As the company addresses these issues, it is crucial for stakeholders to remain informed and engaged in the ongoing developments.
Summary: Investigations into Tropik Wood Industries reveal serious allegations of misuse of over $50 million in corporate funds, leading to internal disciplinary actions and a renewed focus on governance under new executive chairman Ratu Rakuita. The company aims to complete a new sawmill project while ensuring operational efficiency and accountability.
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