FICAC to investigate sale of Fiji Forests shares

The current board of Tropik Wood Industries Limited has called in FICAC to investigate the sale of its subsidiary company Fiji Forest Industries which led to a loss of $2.11,000,000.

Following the decision, the Tropik Wood Board has made a formal request to the government to suspend logging, milling and export license of Fiji Forests until the matter is resolved.

According to a statement released this afternoon, Board Chairman Ratu Tevita Uluilakeba Mara alleges that the former board of directors of Tropik Wood sold the entire shares of Fiji Forests to one director for only $340,000.

According to Ratu Tevita Fiji Forests at the time of the sale, had total assets of more than $7.4,000,000 and following the transaction Tropik Wood continues to provide a bank guarantee of $3,000,000 to the Fiji Development bank, on behalf of Fiji Forests.

Ratu Tevita stresses that the ulitmate holding company of Tropik Wood is the government which despite the alleged transaction made a profit of $1.2, 000,000 from revenue of $34,000,000.

FICAC confirmed they have received the request for a formal investigation into the transaction from Tropik Wood and investigations will commence soon.