JAB vs Sanlam: Staff hold their breath

Last Tuesday, staff members gathered outside the Nelspruit Magistrate’s Court to await a civil court decision regarding their future with the company.

Employees holding placards outside the court told Lowvelder they had not been paid their salaries or overtime.

“They misused us. There are funds missing out the business and now some of the shareholders want to close it down. What happens to us?”

PwC evaluated that, including staff and their families, about 6 000 people would be affected by the closure of the business.

The Bruce Fruit (owned by Sanlam), put in an intervention against JAB Dried Fruit Products, Johacor Einedomme, Adam Johannes Barnard, and Companies and Intellectual Property Commission.

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This was to intervene in a liquidation application.Inside the Circuit of the High Court, members of the public, shareholders and creditors had gathered to hear the outcome.

In the court records it stated that Corné, Johan and Hannetjie Barnard had been the founding owners of JAB Dried Fruit. For the last five months Corné had been suspended as managing director of the business.

“The Bruce holds 60 per cent shares in JAB, and is seeking an order placing JAB under business rescue. They purchased these shares in June 2017, for an amount of R131 487 988.”

Sanlam senior manager, Allim Milazi confirmed that the company and its wholly owned subsidiary, The Bruce Fruit, submitted an application for business rescue of JAB Dried Fruit Products for hearing by the Mpumalanga High Court.

“The hearing was postponed to October 23 by agreement between the parties. Sanlam, through its Private Equity division, has a 60 per cent stake in JAB.”

Sanlam and TBF’s business rescue application requested the court to dismiss an application to liquidate JAB brought by Barnard Investments, Johacor and Sensational Dried Fruit and Nuts.

TBF and Sanlam are of the view that it is important to have a hearing to diligently determine whether the business can be rescued.

“The application is supported by many of the employees of JAB, signifying the importance of preserving jobs and the potential viability of the company going forward.”

He said application remained under the adjudication of the High Court. “Consequently, neither TBF nor Sanlam can provide further comment on this matter.”

Lowvelder spoke to Corné Barnard who said the money paid by The Bruce was for the shares of the business. “They failed to invest running capital into the business.

While my family and myself ran the business, our staff were paid and none of this was happening.” He said the best solution for the company was to liquidate.

“Why are they reluctant to have a proper solvency enquiry?

The business could still trade as it is.” Regarding allegations that there was money funnelled to his own businesses in Mozambique and abroad, he commented, “Mozambique pays for Mozambique.

They pay for themselves.” JAB Dried Fruit remained closed awaiting the court’s decision about the business’s future.