An internal audit conducted by the management of Fiji Pine Ltd (FPL) has uncovered alleged misappropriation of company resources, mismanagement, and unauthorized disbursement of funds exceeding $60 million. The company’s executive chairman, Ratu Rakuita Vakalalabure, confirmed that these issues arose under previous management.
Ratu Rakuita stated, “An internal audit investigation is ongoing for the Fiji Pine Group and, according to the findings, the company faces significant governance challenges stemming from past management failures.” He highlighted problems such as a lack of clear policy guidelines, leading to the misuse of resources and financial mismanagement.
The audit has reportedly completed the first two phases of an extensive investigation into the company’s operations. Following the findings, FPL has sought independent legal advice due to the serious nature of the criminal elements identified and the considerable financial losses involved.
“A copy of the internal audit report has been sent to the relevant regulatory authorities and government ministries following recommendations from legal counsel,” Ratu Rakuita added. The report indicated that the financial losses are largely the result of a fragile governance framework and inadequate internal controls, which have allowed for abuse of company resources and authority for over a decade, describing the situation as both pervasive and deeply rooted.
The internal auditor will collaborate with a forensic expert to detail the company’s losses, estimated at approximately $66.79 million, from various local bank accounts, with expectations that this figure could rise based on ongoing audits.
According to company employee Apenisa Korodrau, who oversees internal audits and investigations, the previous management’s excessive reliance on the internal audit has blurred its functional responsibilities, raising concerns about the auditors’ independence and exposing FPL to further resource abuse and mismanagement. He pointed out that selective reporting has largely been influenced by management over the past ten years.