Thami Magubane|Published2 hours agoTongaat Hulett liquidation: Trade Minister Parks Tau confirms legal action to prevent economic fallout …

Trade, Industry and Competition Minister Parks Tau said they are contesting the provisional liquidation of Tongaat Hulett in the Durban High Court. The Department of Trade, Industry and Competition has said it intends to oppose theliquidation of Tongaat Hulett Limited, amid fears of economic destruction if the company is allowed to close down. Minister of Trade, Industry and Competition Parks Tau revealed this weekend that they are contesting the liquidation in court.

Tau made the comment during the “Frank Dialogue on the Future of B-BBEE in South Africa” gathering that was hosted in Durban on Saturday. He was responding to the concerns abouteconomic devastationthat could follow if the company was liquidated. Zulu King Misuzuluhas also expressed concerns about the possible liquidation and has even intervened, engaging with billionaire businessman Robert Gumede from Vision Investments, which owns the bulk of Tongaat Hulett’s debt.

Tau stated, “We are challenging the Tongaat liquidation in court; that is what I can say about the matter going forward.” Inkosi Malusi Zondi was delegated by the king to engage with Gumede on the matter. He told The Mercury that they had engaged with the minister on his department’s efforts to save the sugar company. He said they had engaged with the minister several times, including on Saturday, on the issue.

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“The minister has promised they will intervene in the matter because they also do not want to see any job losses. We have high hopes that, as the king had asked for jobs to be saved, that will be so.” Speaking of the meeting with Gumede, he said, “Gumede and his partners, we must thank them for ensuring that for the last two years (since the company has been facing problems), the workers have continued receiving their salaries.” It was reported on Friday that the Joint Business Rescue Practitioners (BRPs) of Tongaat Hulett Limited say they are confident that funding will be available to pay salaries due on March 25, as the provisional liquidation application was adjourned in the Durban High Court on Friday. The BRPs confirmed in a statement that the court has directed that a structured timetable be followed that will govern the further conduct of the provisional liquidation application and hearing thereof. A date for the hearing of the matter will have to be set by the KwaZulu-Natal Judge President.

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