Initial investigations have uncovered fraud amounting to almost 5-million US dollars at the Fiji Sugar Corporation's smallest mill at Penang.
Radio Fiji reports that the fraud involved the hiring of equipment, purchase of supplies, sale of vehicles and the award of contracts.
The fraud could reach a much higher figure by the time investigations are completed.
This week the general manager of Penang Mill, Savenaca Cavalevu, resigned under pressure from top corporation executives.
The technically bankrupt Fiji Sugar Corporation, which has been making huge losses in the last three years, is only able to continue processing cane with the help of government guaranteed loans.