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 funds exceeding $60 million. Ratu Rakuita Vakalalabure, the executive chairman of the company, confirmed that these issues arose under previous management.
“An internal audit investigation is actively being carried out for the Fiji Pine Group, and the findings reveal significant governance problems stemming from past management failures,” he stated. “These issues include a lack of clear policy guidelines that have led to resource abuse, mismanagement, and unauthorized financial releases.”
Ratu Rakuita explained that the internal audit has completed the first two phases of an extensive investigation into the company’s operations. He mentioned that FPL has sought independent legal advice based on the internal audit’s findings, especially given the serious criminal implications and notable losses of company funds.
A report from the internal audit has been forwarded to relevant regulatory bodies and government ministries, following recommendations from legal advisors. The audit highlights that the losses are primarily due to a deficient governance structure and internal controls, which have created numerous opportunities for resource abuse over the past decade.
The internal auditor stated that they will collaborate with forensic experts to analyze the results from the initial phases of the investigation, projecting company losses to be approximately $66.79 million across various local bank accounts, with expectations for this figure to rise as the investigation continues.
Apenisa Korodrau, a relatively new employee who leads the internal audit and investigation team, noted that the previous management’s heavy reliance on internal audits for operational matters has distorted the traditional role of the internal audit function. He expressed concerns that this dependence jeopardized the auditors’ independence and permitted prolonged resource abuse and mismanagement, driven by selective reporting influenced by management for over a decade.