AN internal audit carried out on Fiji Pine Ltd (FPL) by its current management has revealed alleged abuse of company resources, mismanagement and unauthorised release of company funds to the tune of over $60m.
The company’s executive chairman Ratu Rakuita Vakalalabure confirmed these allegations happened under the past management.
“An internal audit investigation is currently underway for the Fiji Pine Group and according to the company’s internal Audit Report, the Fiji Pine Group, a behemoth in the pine industry, is facing major governance issues from past management failures,” he said.
“This include the lack of clear policy guidelines that tantamount to abuse of company resources, mismanagement, and unauthorised release of company funds.
“The Internal Audit had completed Phases I and II of an intensive and extensive investigation into the Company’s affairs.”
Ratu Rakuita said FPL has sought an independent legal opinion based on the internal audit findings, noting the materiality of criminal elements attached in the internal audit and significant losses of company funds.
“A copy of the Internal Audit Report has been submitted to the relevant regulatory bodies and Government Ministry following the independent recommendation of its legal adviser,” he said.
“The Internal Audit Report highlighted that the losses are strongly attributed to a weak governance structure and internal controls in the company that created multiple opportunities to abuse company resources including abuse of authority for over a decade. It was both systemic and endemic.
“The internal auditor of [FPL] will work with a forensic expert based on the results of Phase I and II of the investigation to map out company losses approximating to $66.79 million from its various local bank accounts where this figure could be expected to increase as indicated by its internal audit.”
Company employee Apenisa Korodrau who joined the company last year and heads the internal audit and investigation said that heavy reliance of the previous management on internal audit and directly assuming management responsibilities has shifted the standard paradigm structure of internal audit function from their functional role requirements.
“This heavy reliance on internal audit for operational matters questions the auditor’s independent role and directly exposes Fiji Pine to abuse of resources and mismanagement with selective reporting having largely been driven by management influence for more than a decade,” Mr Korodrau said.
