Parliament’s standing committee on public accounts (Scopa) has been asked to probe the use of more than R6.3 billion in public funds allegedly funnelled into the beleaguered business rescue of sugar giant Tongaat Hulett (THL). Lawyers acting for creditor RGS Group Holdings have requested the committee to investigate the role of the Industrial Development Corporation (IDC) in funding the business rescue, as well as financing provided to the Vision Consortium which is leading the rescue bid. THL, a Johannesburg Stock Exchange-listed company, is one of South Africa’s major producers of sugar, ethanol and animal feed.
“The purpose of this letter is to request an investigation by Scopa into the use of public funds in Tongaat’s business rescue proceedings,” the letter says. The Public Investment Corporation holds about 14.24% of the shares in Tongaat, much of which represents investments emanating from the Government Employees Pension Fund. According to RGS’ attorneys, it is a matter of significant public interest and importance that both the provision and use of public funds by Vision and THL be investigated since thebusiness rescuepractitioners have concluded that THL cannot be rescued despite the advancement of R6.3 billion of public funds.
THL, a major pillar of the KwaZulu-Natal economy, was placed under business rescue in October 2022 following accounting irregularities and unsustainable debt. The sugar production giant supported over 185 000 jobs and over 21 000 farmers, generating about R7.8 billion in revenue in the 2023 financial year. RGS claims that Vision delayed acquiring the lenders’ claims for 16 months, triggering the collapse of a proposed debt-to-equity conversion and forcing an alternative asset sale that could see Tongaat delisted and liquidated.
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Despite the billions of rands committed, business rescue practitioners reportedly concluded in December 2025 that the company could no longer be rescued and that liquidation proceedings were imminent. RGS argues that the scale of public funding, the lack of transparency around its use and the risk of mass job losses warrant urgent parliamentary scrutiny to ensure accountability and protect public money.
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