Investigations are underway into significant allegations of misuse of corporate funds at Fiji’s largest sawmill and wood chipping facility, Tropik Wood Industries. Central to these inquiries is a substantial allocation exceeding $50 million for a new sawmill, which has drawn scrutiny due to a lack of proper documentation.
The situation comes to light following the appointment of executive chairman Ratu Rakuita Vakalalabure, who took office last year, following Vimlesh Kumar’s tenure as chief executive officer at Fiji Pine Group starting in 2020. Ratu Rakuita’s term has been renewed through 2026.
During the evaluation of the proposed sawmill site, geotechnical issues were identified, including the presence of a spring of water as revealed in an engineering report. Ratu Rakuita noted that various changes to the original contracts have led to delays and increased costs, but he assured that efforts are underway to complete the project efficiently and initiate production.
In light of the audit conducted, it was reported that over FJ$50 million in corporate funds were wasted due to poorly executed projects and improperly ordered equipment. As a result, internal disciplinary actions are in progress. Ratu Rakuita stated that forensic accountants are investigating the lack of documentation linked to significant expenditure from the company’s accounts.
This marks the second investigation associated with the Drasa mill in Lautoka since Ratu Rakuita assumed leadership. Other identified breaches of corporate governance have also been forwarded to the Director of Public Prosecution for possible further action.
Fiji Pine Limited, the parent company, is responsible for managing forestry operations, collaborating with land leaseholders, and maximizing profits across their group of companies. Tropik Wood is particularly noted for its manufacturing process and claims to produce the highest quality timber in the South Pacific.
While the ongoing investigations bring attention to serious concerns within the organization, they also represent an opportunity for reform and accountability. With proactive measures being taken under new leadership, there is potential for Tropik Wood to emerge stronger, ensuring more robust governance practices moving forward.
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