Sugar industry on edge as Tongaat Hulett faces liquidation hearing

Stephen Grootes speaks to Sam Sole, Managing partner of the amaBhungane centre for investigative journalism about the high stakes battle over Tongaat Hulett, the looming liquidation bid, and the claims of corporate manipulation that now threaten the entire KZN sugar economy.

Listen to the interview in the audio player below.

A critical court hearing scheduled for Friday, which could determine the fate of Tongaat Hulett.

Business rescue practitioners (BRPs) plan to ask the court to place the company under provisional liquidation, a move that could trigger the shutdown of sugar mills just weeks before the harvest season begins.

Without the mills operating, cane growers would be unable to process their crops, putting thousands of jobs and livelihoods at risk.

At the centre of the latest crisis is R11.7 billion in debt claims now held by the Vision consortium, led by businessman Robert Gumede.

Earlier this month, Vision issued a formal demand for immediate repayment of the debt. This demand triggered the liquidation application now heading to court.

Tongaat Hulett, once one of South Africa’s largest sugar producers and a major employer in KwaZulu-Natal, has spent several years battling financial collapse. After an accounting scandal, mounting debt and operational challenges, the company entered business rescue in 2022, a legal process designed to protect financially distressed companies while a turnaround plan is developed. 

Speaking to Stephen Grootes on The Money Show, Sam Sole, Managing partner of the amaBhungane centre for investigative journalism says the survival of Tongaat Hulett is vital to the region.

He says if the mills stop operating, the upcoming harvest could become worthless, creating severe economic disruption across the region.

"This is a huge employer in rural KZN. There's a threat of disruption, riots, unemployment and breakdown in the province, and I think there's a deliberate effort to get government to blink."

- Sam Sole, managing partner - amaBhungane centre for investigative journalism

"If there's not a deal before Friday, we're gonna see the arguments about that in court om Friday."

- Sam Sole, managing partner - amaBhungane centre for investigative journalism

"You can't encumber, more or less an entire company without consolidating those debts or those potential liabilities at the central level and kind of letting shareholders know. As far as we can tell, that was never done."

- Sam Sole, managing partner - amaBhungane centre for investigative journalism

Scroll to the top of the article to listen to the full interview.