An internal audit conducted by the current management of Fiji Pine Ltd (FPL) has uncovered alleged misuse of company resources, mismanagement, and unauthorized disbursement of more than $60 million. Ratu Rakuita Vakalalabure, the company’s executive chairman, confirmed that these issues arose under previous management.
According to the internal audit report, the Fiji Pine Group, a significant player in the pine industry, is facing serious governance challenges stemming from past management failures. The report indicates a lack of clear policy guidelines that contributed to resource abuse, mismanagement, and unauthorized fund releases.
Ratu Rakuita stated that the internal audit has completed the first two phases of an extensive investigation into the company’s affairs. Following the audit’s findings, FPL has sought independent legal advice due to the potential criminal implications and the considerable financial losses identified.
A copy of the internal audit report has been submitted to relevant regulatory bodies and government ministries following recommendations from the company’s legal adviser. The audit highlights that the financial losses are largely linked to a weak governance framework and insufficient internal controls, which facilitated resource abuse and misuse of authority for over a decade. This situation is described as both systemic and endemic.
The internal auditor will collaborate with forensic experts based on the investigation results to estimate company losses, which currently stand at approximately $66.79 million across various local bank accounts. This figure is expected to rise as the audit continues.
Apenisa Korodrau, a company employee who joined last year and now leads the internal audit and investigation, noted that previous management heavily relied on internal audit functions while assuming management responsibilities. This reliance shifted the internal audit’s traditional role and raised concerns about its independence, exposing Fiji Pine to resource abuse and mismanagement driven by selective reporting influenced by management for over a decade.