DTIC plans to oppose liquidation of Tongaat Hulett

The Department of Trade, Industry and Competition (DTIC) plans to oppose the liquidation of sugar producer Tongaat Hulett, joining a list of other dissenting voices who plan on making a case against the pending move.

This follows concerns of the imminent collapse of the 134-year-old company after another failed attempt to rescue the business.

Tongaat Hulett's closure could devastate KZN’s local economy and put thousands of livelihoods across operations in South Africa, Eswatini, Zimbabwe, and Mozambique at risk.

Tongaat Hulett has been in business rescue since 2022, in what was labelled accounting irregularities, financial misstatements and governance issues.

Since then, two major groups have made a play for the distressed sugar producer, Robert Gumede's Vision Consortium and competitor Mozambican retailer RGS Group.

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The sugar giant’s business rescue practitioners have now filed for provisional liquidation after a R12-billion collapse -amid a breakdown in funding talks and new demands from the vision consortium.

"Government will intensify its engagements with all stakeholders, including the industrial development corporation (idc), labour, growers, financiers, investors and affected communities, to explore solutions that ensure the survival of the company and the long-term sustainability of the sugar sector," said DTIC spokesperson, Kaamil Alli.

He said government wants to ensure jobs are protected and the safeguarding of small-scale and emerging farmers.