- Zulu Royal Chancellor Inkosi Malusi Zondi says King Misuzulu kaZwelithini instructed him to find a solution and prevent the liquidation.
- South African Farmers Development Association says 60% of its 25,000 members farm in Tongaat Hulett’s area and would be affected.
The Zulu Royal Kingdom is calling on the government to stop Tongaat Hulett from being liquidated, warning that rural communities depend on the company.
Zulu Royal Chancellor Inkosi Malusi Zondi says King Misuzulu kaZwelithini has instructed him to find a solution and prevent the liquidation.
Zondi is calling on the government to intervene, pointing to its support for companies facing liquidation in Gauteng. He says Tongaat Hulett deserves the same treatment “since it’s a company that is owned by black communities.”
Tongaat Hulett filed for provisional liquidation after rescue efforts were exhausted. The more than 130-year-old company was hit by an accounting fraud scandal in 2019.
A PricewaterhouseCoopers audit found that key executives had manipulated the company’s accounts to inflate profits over several years. The inflated figures were allegedly used to justify executive bonuses and share options.
The company was forced to write down R12-billion in value and left with a R6.6-billion debt. It entered voluntary business rescue in 2022 and an official rescue plan was adopted by 2024.
The latest controversy involves more than R1-billion reportedly paid in professional fees linked to findings not yet made public.
The South African Farmers Development Association (SAFDA), which represents about 25,000 small-scale farmers, says roughly 60% of its members farm in the company’s catchment area and would be directly affected.
KZN MEC for Economic Development, Tourism and Environment Affairs Rev Musa Zondi says Tongaat Hulett has long been a backbone of the province’s agricultural sector.
“KwaZulu-Natal is largely an agricultural province with a diversified industrial base, and the sugar industry is deeply embedded in our rural economy … Any disruption of this scale carries serious consequences for workers, small scale growers and households across our districts,” he said.
Pictured above: Zulu Royal Kingdom calls for government intervention at Tongaat Hulett.
Image source: Tongaat Hulett
