Investigations are underway following serious allegations regarding the misuse of corporate funds at Fiji’s largest sawmill and wood chipping facility, Tropik Wood Industries. Central to these inquiries is the allocation of over $50 million designated for a new sawmill, with concerns raised over the lack of proper documentation associated with these funds.
The scrutiny intensified after Ratu Rakuita Vakalalabure assumed the role of executive chairman last year, a position he has been reappointed to until 2026. He took over from Vimlesh Kumar, who had been the chief executive officer of Fiji Pine Group since 2020.
Ratu Rakuita has acknowledged the presence of geotechnical concerns at the initially proposed sawmill site, revealing an engineering report that identified groundwater issues. He noted that necessary adjustments to the original contracts have led to both delays and financial losses for the project, but he is committed to bringing the sawmill into production by moving forward with the tendering process.
Despite these setbacks, Ratu Rakuita assured stakeholders that operational production and exports will continue as planned.
Internal audits have revealed significant waste, exceeding F J$50 million, attributable to poorly executed projects and failure to conform to equipment specifications. Following the irregularities, forensic accountants are conducting further investigations into the spending discrepancies. Ratu Rakuita has emphasized that internal disciplinary actions are in progress, aiming to address and rectify the issues uncovered through these audits.
This situation marks the second investigation linked to the Drasa mill in Lautoka during Ratu Rakuita’s tenure. He also indicated that other governance violations have been flagged and reported to the Director of Public Prosecution for appropriate legal proceedings.
Fiji Pine Limited, the parent organization, is responsible for managing forest resources, collaborating with land leaseholders, and overseeing the fiscal health of its subsidiary companies. Tropik Wood Industries stands out in the region, renowned for producing high-quality timber throughout the South Pacific.
This scenario reflects a growing commitment to corporate accountability within Fiji’s timber industry, highlighting the importance of transparency and effective governance. For the future, it is encouraging to see a focus on rectifying existing issues while ensuring that production processes remain robust and efficient.
In summary, the concerted efforts of leadership at Fiji Pine Limited to address significant financial discrepancies symbolize a proactive approach to governance that can ultimately strengthen the integrity of the organization moving forward.
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