Sugarcane farmers in KwaZulu-Natal have appealed to the government to step in and save Tongaat Hulett, warning that the future of thousands of families linked to the sugar industry is at risk, SABC News reported.
The call comes after business rescue practitioners applied for the provisional liquidation of the company. Tongaat Hulett is burdened with debt of about R12 billion, and a proposed rescue plan by the Vision Consortium has failed. Farmers say the situation threatens the livelihoods of nearly one million people who depend on the sugar value chain.
The companyтАЩs troubles follow a multi-billion-rand fraud scandal that came to light in 2019, which severely weakened its finances.
The South African Farmers Development Association (SAFDA) said the situation, while serious, is not beyond recovery. The group said it has been assured by the Industrial Development Corporation that there are still funds available to keep the company operating in the short term.
Association chairperson Siyabonga Madlala urged workers and farmers not to panic. He said the term тАЬprovisional liquidationтАЭ had caused fear, but discussions with senior government officials and leaders of the Vision Consortium suggested that the government was stepping in at the highest level.
Madlala said he had received encouraging assurances that a team had been set up by the minister to address the crisis. He appealed for calm among employees and growers, saying the commitments made so far were promising and gave hope that the company could still be stabilised.
