Investigations are underway concerning allegations of misuse of corporate funds at Tropik Wood Industries, the largest sawmill and wood chipping facility in the country. Central to these inquiries is a $50 million allocation meant for constructing a new sawmill, which has been marred by a lack of proper documentation.
The scrutiny began following the appointment of executive chairman Ratu Rakuita Vakalalabure, who assumed his position last year and has been granted a renewed term until 2026. He took over from Vimlesh Kumar, who had progressed through the ranks to become the chief executive officer for Fiji Pine Group in 2020.
Ratu Rakuita reported that geotechnical issues had been discovered at the originally proposed site for the new sawmill. An engineering assessment indicated the presence of a spring of water beneath the site, leading to multiple changes in the initial contracts—resulting in delays and increased costs. Nevertheless, Ratu Rakuita affirmed that efforts would be made to complete the project and bring it into production, with tenders to be issued for future work. In the meantime, production and export processes are continuing unhindered.
A recent internal audit revealed significant mismanagement, identifying over FJ$50 million in waste attributed to poorly executed projects and failure to procure equipment according to specifications. This prompted a thorough review by forensic accountants, especially regarding the undocumented spending of company funds. Ratu Rakuita assured that internal disciplinary actions are being undertaken and that the individuals involved will be held accountable.
This marks the second investigation connected to the Drasa mill in Lautoka since Ratu Rakuita’s appointment. He has noted additional corporate governance violations, which have been forwarded to the Director of Public Prosecution for further action.
Fiji Pine Limited, the parent organization, manages forestry operations and collaborates with land leaseholders to ensure the profitability of its subsidiaries, while Tropik Wood oversees the sawmill and manufacturing processes, proudly positioning itself as a supplier of the highest quality timber in the South Pacific.
In summary, while the challenges facing Tropik Wood Industries reflect significant internal issues, the proactive measures being instituted by Ratu Rakuita and team signal a commitment to transparency, accountability, and ultimately, a more robust operational framework moving forward. This is an encouraging development for stakeholders who depend on the success and integrity of the company.
Overall, these investigations could pave the way for necessary reforms and improvements that will benefit the organization and its future endeavors.
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