State opposes provisional liquidation of Tongaat

A STATEMENT by the Department of Trade Industry and Competition (DTIC) has indicated that the government would oppose the provisional liquidation of Tongaat Hulett Limited announced last week and will continue to support all lawful efforts aimed at finding a viable and durable resolution.

- YOGASHEN PILLAY

This comes following more calls to help Tongaat Hulett.DTIC said that they note the latest developments relating to Tongaat Hulett Limited, including the pending liquidation proceedings currently before the courts.

“Minister Parks Tau is acutely aware that the sugar industry remains under pressure due to difficult trading conditions, both domestically and internationally. Tongaat Hulett is a systemically important player in South Africa’s sugar value chain.”

DTIC added that the liquidation of the company would have far-reaching and devastating consequences for the sugar sector, particularly in KwaZulu-Natal, where the industry underpins thousands of jobs, small-scale farming livelihoods, rural economies and related downstream industries.