An internal audit conducted by the current management of Fiji Pine Ltd (FPL) has uncovered alleged mismanagement, misuse of company resources, and unauthorized disbursement of funds exceeding $60 million.
Ratu Rakuita Vakalalabure, the company’s executive chairman, confirmed that these issues occurred under previous management. He stated, “An internal audit investigation is currently underway for the Fiji Pine Group. According to the company’s internal Audit Report, the group is confronting significant governance problems stemming from past management failures.”
The audit indicated failures such as the absence of clear policy guidelines that led to resource abuse and mismanagement. Ratu Rakuita noted that Phases I and II of the investigation have been completed.
FPL has sought an independent legal opinion regarding the findings of the internal audit due to the serious criminal implications suggested by the audit and the considerable losses identified. “A copy of the Internal Audit Report has been forwarded to the pertinent regulatory bodies and Government Ministry following recommendations from its legal advisor,” he added.
The report revealed that the losses are significantly linked to a frail governance framework and internal controls within the company, which allowed for widespread resource abuse and authority misuse over an extended period. It indicated systemic and endemic issues.
The internal auditor of FPL will collaborate with a forensic expert to identify company losses estimated at $66.79 million from various local bank accounts, with expectations that this figure might rise based on the internal audit findings.
Apenisa Korodrau, an employee who took over the internal audit and investigation role last year, highlighted that the previous management’s excessive dependence on internal audit functions and their direct management involvement altered the traditional auditing structure. He stated, “This heavy reliance on internal audit for operational matters raises questions about the auditor’s independence and has left Fiji Pine vulnerable to resource abuse and mismanagement, largely based on selective reporting driven by management influence over the past decade.”