An internal audit conducted by the management of Fiji Pine Ltd (FPL) has uncovered allegations of resource abuse, mismanagement, and unauthorized disbursement of over $60 million in company funds. Executive chairman Ratu Rakuita Vakalalabure confirmed that these issues stemmed from previous management practices.
The ongoing internal audit investigation has revealed significant governance failures within the Fiji Pine Group, a key player in the pine industry. Ratu Rakuita noted that there was a lack of concise policy guidelines leading to the misuse of resources, mismanagement, and wrongful fund releases.
Phases I and II of the investigation have been completed, with FPL now seeking independent legal counsel regarding the findings, due to the seriousness of the criminal implications and the substantial losses incurred.
The audit report has been submitted to relevant regulatory authorities and government ministries, based on legal advice. It indicates that the financial losses are largely due to a frail governance structure and inadequate internal controls, which have allowed for systemic and long-term resource abuse.
The internal auditor will collaborate with a forensic expert to further investigate, with expected losses amounting to around $66.79 million from various local bank accounts. This figure may continue to rise as the audit progresses.
Apenisa Korodrau, who leads the internal audit and investigation after joining the company last year, expressed concerns about the prior management’s excessive reliance on internal audit functions, which compromised the auditor’s independence and led to resource abuse and selective reporting influenced by management.