The Fiji Sugar Corporation has cancelled the contract of JJ Bhagat, which is the project manager overseeing mill upgrades.
FBC News says Bhagat managed the work on behalf of the Sugar Technology Mission of India which was to undertake the FSC's multi-million dollar upgrade.
The FSC's acting CEO, John Prasad, says the STM was the Indian government entity that scoped and detailed mill equipment and process requirements when the project began.
He says that by cancelling Bhagat's contract the FSC will save money which will now be used to bring in specialist expertise from India.
During a recent visit to the mills, the minister in charge, Commodore Frank Bainimarama, said the Lautoka mill was kept like a junkyard.
His regime also deployed soldiers at the mills because it suspected sabotage.