Investigations are underway at Tropik Wood Industries, the largest sawmill and wood chipping facility in the country, amid serious allegations concerning misuse of corporate funds. The central issue revolves around a budget allocation exceeding $50 million for a new sawmill, which lacks adequate documentation.
The scrutiny intensified following the appointment of Ratu Rakuita Vakalalabure as executive chairman last year, whose term has now been extended through 2026. He succeeded Vimlesh Kumar, who had previously served as chief executive officer of Fiji Pine Group.
Ratu Rakuita revealed that geotechnical challenges were discovered at the proposed site for the new sawmill. “An engineering report indicated the presence of a spring of water under the planned location,” he stated. These unforeseen structural issues have led to contract variations that have ultimately increased both the project’s timeline and costs. However, he assured that efforts are underway to see the project completed and operational, with tenders being announced soon.
Despite these challenges, Ratu Rakuita emphasized that production and export activities will proceed without delay.
As for the internal review, findings have identified over FJ$50 million in wasted funds due to poorly executed projects and equipment specifications that were not properly adhered to, resulting in significant losses for the company. In response, internal disciplinary measures are currently being implemented, and Ratu Rakuita has assured that consequences will be enforced for those responsible. This marks the second investigation at the Drasa mill in Lautoka since his appointment, with additional issues regarding corporate governance already referred to the Director of Public Prosecution.
Fiji Pine Limited, the overarching entity overseeing forest management and land leases, also manages Tropik Wood, which is regarded as a leading producer of quality timber in the South Pacific.
In summary, the ongoing investigations signify a commitment to transparency and accountability at Tropik Wood Industries. Despite the current challenges, the leadership appears poised to resolve these issues and restore trust in the company, ultimately aiming for a stronger and more efficient operation moving forward. This situation illustrates the importance of corporate governance and vigilance in resource management, which can lead to improved practices and results in the long run.
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