The investigations into alleged misuse of corporate funds at Tropik Wood Industries, the largest sawmill and wood chipping facility in the country, are resulting in significant changes within the organization. Central to these inquiries is a more than $50 million allocation for a new sawmill that lacks proper documentation.
This scrutiny follows the recent appointment of Ratu Rakuita Vakalalabure as executive chairman, who assumed office last year and has had his term extended until 2026. He succeeded Vimlesh Kumar, who rose to the position of CEO of Fiji Pine Group in 2020.
Ratu Rakuita revealed that geotechnical issues, including an engineering report indicating the presence of a water spring at the proposed sawmill site, have delayed the project and led to additional costs. However, he expressed optimism about moving forward, stating that tenders for the sawmill will soon be announced, and production and export operations will continue as planned.
In addition, an internal audit has uncovered over FIJ$50 million in wasted corporate funds, attributed to poor project planning and a failure to meet equipment specifications. Following the discovery of inadequate documentation concerning these expenditures, forensic accountants have initiated a thorough investigation. Ratu Rakuita has assured that internal disciplinary proceedings are underway to address the matter and emphasize accountability within the organization.
This is the second investigation at the Lautoka-based Drasa mill since Ratu Rakuita’s appointment, revealing further breaches of corporate governance, which have been forwarded to the Director of Public Prosecutions for possible action.
Fiji Pine Limited oversees the management of forests and collaborations with land leaseholders while ensuring the profitability of its companies. Tropik Wood takes pride in its reputation for providing high-quality timber throughout the South Pacific.
This situation, though serious, presents an opportunity for Tropik Wood Industries to reinforce accountability and improve governance standards within the organization. By addressing these issues transparently, the company can rebuild trust with stakeholders and enhance its business practices moving forward.
In summary, as Tropik Wood navigates through this challenging period, it has the potential to emerge stronger and more responsible, setting a positive precedent for corporate governance in the region.
Leave a comment