Cash-strapped Tongaat Hulett puts over 14,000 jobs at stake

0

The company admitted its financial difficulties last week and said it would begin a voluntary process to rescue the business.

A sugar cane field belonging to the Tongaat Hulett group. Photo: tongaat.com

JOHANNESBURG – The South African Sugar Cane Growers Association (SACGA) said on Wednesday nearly 15,000 jobs were at stake as Tongaat Hulett Limited missed its deadline to pay them.

The company admitted its financial difficulties last week and said it would begin a voluntary process to rescue the business.

The association said the company was supposed to pay farmers R400 million for a delivery of sugarcane made in September.

A crisis looms in the sugar industry as the more than a century-old company faces financial challenges.

Tongaat Hullet Limited is currently in debt of R5 billion, with millions owed to farmers.

SACGA said this would have detrimental effects on small communities in KwaZulu-Natal whose livelihoods depend on agriculture.

Association chairman Andrew Russel said: ‘We need to find a way to help the 4,300 producers affected and the 14,600 jobs currently at risk.’

While the company embarked on rescuing businesses in South Africa, it said operations in Botswana, Zimbabwe and Mozambique were going smoothly.

Share.

Comments are closed.