Investigations are currently under way concerning allegations of misused corporate funds at the largest sawmill and wood-chipping facility in the country, Tropik Wood Industries. Central to these investigations is a $50 million allocation for a new sawmill that allegedly lacks proper documentation.
The scrutiny follows the appointment of Ratu Rakuita Vakalalabure as executive chairman last year, a position he has held with a renewed term extending through 2026. He replaced Vimlesh Kumar, who was previously the CEO of Fiji Pine Group since 2020.
In assessing the planned location for the new sawmill, structural anomalies were discovered. Ratu Rakuita reported that an engineering analysis revealed the presence of a water spring beneath the site, which has caused variations in the initial contracts, leading to delays and additional costs for the project. He assured that efforts would continue to see the sawmill completed and operational, with tenders soon to be called as a way to move forward.
Amid these challenges, Ratu Rakuita confirmed that production and export processes are still in full swing.
On the internal front, audits revealed over FJ$50 million in wasted company funds due to poorly planned projects and incorrect equipment orders. This prompted a deeper investigation by forensic accountants due to a noticeable lack of documentation regarding expenditure. Ratu Rakuita stated that internal disciplinary measures are in progress and that those responsible will face consequences.
This is the second investigation tied to corporate governance issues at the Drasa mill in Lautoka since Ratu Rakuita’s appointment. Any serious breaches have been referred to the Director of Public Prosecutions for potential further action.
Fiji Pine Limited oversees the management of forests, collaborates with land lease holders, and monitors the profitability of its associated companies, while Tropik Wood specifically manages the sawmill operations, touting its reputation for high-quality timber production in the South Pacific.
In light of these events, it is vital for corporate governance to be reinforced and for accountability measures to be put in place, ensuring that transparency becomes a key focus in all future operations. This situation, while troubling, provides an opportunity for Tropik Wood Industries to emerge stronger and more efficient, ultimately benefiting stakeholders and the broader community.
Summary: Investigations into Tropik Wood Industries have revealed allegations of over $50 million in misused corporate funds linked to a new sawmill project lacking proper documentation. Internal audits have prompted disciplinary action and further investigations into corporate governance breaches. Despite these challenges, production and export activities continue, highlighting a commitment to efficiency and transparency moving forward.
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