An internal audit conducted on Fiji Pine Ltd (FPL) by the current management has uncovered allegations of resource abuse, mismanagement, and unauthorized expenditures exceeding $60 million. Ratu Rakuita Vakalalabure, the company’s executive chairman, indicated that these issues occurred under previous management.
“The internal audit investigation is currently in progress for the Fiji Pine Group. According to the internal Audit Report, the organization, a major player in the pine industry, is grappling with significant governance concerns stemming from past management failures,” he stated.
Ratu Rakuita noted that the report highlighted a lack of clear policy guidelines that led to the abuse of resources, mismanagement, and unauthorized disbursement of company funds. He also mentioned that Phases I and II of the extensive audit examination have been completed.
FPL has sought independent legal advice based on the findings of the audit, which pointed out potential criminal elements and significant financial losses. “A copy of the Internal Audit Report has been forwarded to the appropriate regulatory authorities and the Government Ministry, following the independent recommendations of our legal advisor,” he added.
The report indicates that the reported losses are significantly attributed to a fragile governance framework and inadequate internal controls, resulting in numerous opportunities for resource misuse and authority abuse over more than a decade. This situation has been described as both systemic and endemic.
The internal auditor will collaborate with forensic experts to assess the company’s losses, currently estimated at approximately $66.79 million from local bank accounts. This figure is expected to rise as the audit progresses.
Apenisa Korodrau, an employee who joined FPL last year and heads the internal audit and investigation, stated that the previous management’s heavy reliance on the internal audit function has blurred the lines of its intended role. “This reliance has compromised the auditor’s independence and has exposed Fiji Pine to potential resource abuse and mismanagement, with selective reporting influenced by management over the past decade,” Mr. Korodrau explained.