Investigations are underway concerning possible misuse of corporate funds at Tropik Wood Industries, the leading sawmill and wood chipping facility in the country. The inquiry centers around the allocation of over $50 million for the establishment of a new sawmill, amid concerns regarding inadequate documentation.
The scrutiny has escalated following the appointment of Ratu Rakuita Vakalalabure as executive chairman last year, a position he will hold until 2026. He succeeded Vimlesh Kumar, who was the chief executive officer of Fiji Pine Group starting in 2020.
Ratu Rakuita pointed out that geotechnical challenges were discovered at the location selected for the new sawmill, with an engineering study revealing an underground spring at the site. The project has faced delays and incurred additional costs due to multiple amendments to the original contracts. Nevertheless, Ratu Rakuita expressed determination to see the project through and emphasized that doing so is a top priority.
To advance this goal, tenders for the project will soon be announced, while production and export operations continue unabated at the facility.
On the financial management front, Ratu Rakuita detailed findings from an internal audit that revealed over FJ$50 million in wasted funds linked to ill-planned initiatives and non-compliance with equipment specifications. This has triggered an investigation by forensic accountants, focused on the lack of documentation regarding the significant expenditures from company banks.
Ratu Rakuita confirmed that disciplinary actions are underway for those accountable. This investigation marks the second inquiry associated with the Drasa mill in Lautoka under Ratu Rakuita’s leadership, where additional breaches of corporate governance have been identified and forwarded to the Director of Public Prosecution for further review.
Fiji Pine Limited, which oversees forest management and partnerships with land lease holders, is the parent company of Tropik Wood, which prides itself on producing top-quality timber in the South Pacific.
In summary, while the investigations into Tropik Wood Industries could be seen as a setback, they also present an opportunity for corporate governance improvement and enhanced accountability in the future. With Ratu Rakuita’s commitment to transparency and efficiency, there is hope that the company will emerge stronger and more resilient.
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