Unica Iron and Steel's existence threatened by series of scandals

ONCE a pillar of South Africa's steel industry, Unica Iron and Steel (Pty) Ltd now finds itself entangled in a legal storm threatening its very existence.

- SIFISO MAHLANGU

At the heart of the turmoil lies a bitter dispute with the Industrial Development Corporation of South Africa (IDC), sparked by allegations of immigration violations, financial misconduct, and misrepresentation. The controversy began with an anonymous tip-off to the IDC.

The whistleblower alleged disturbing human rights abuses at Unica’s Babel-egi, Hammanskraal facility, including claims of human trafficking, modern slavery, and the employment of roughly 100 Indian expatriates with expired or fraudulent visas.

Prompted by these claims, the IDC launched a forensic audit, which unearthed a series of troubling irregularities.

The audit report was damning. It revealed the employment of undocumented foreign workers, misappropriation of millions of rands, and questionable transactions involving related entities such as KGN Engineering, Unica Plastics, and Unica Textiles.