Questions over transparency and accountability loom as Tongaat Hulett faces possible liquidation.
Parliament’s standing committee on public accounts (Scopa) has been asked to probe the use of more than R6.3 billion in public funds allegedly funnelled into the beleaguered business rescue of sugar giant Tongaat Hulett (THL).
Lawyers acting for creditor RGS Group Holdings have requested the committee to investigate the role of the Industrial Development Corporation (IDC) in funding the business rescue, as well as financing provided to the Vision Consortium which is leading the rescue bid.
Public funding under scrutiny
THL, a Johannesburg Stock Exchange-listed company, is one of South Africa’s major producers of sugar, ethanol and animal feed.
“The purpose of this letter is to request an investigation by Scopa into the use of public funds in Tongaat’s business rescue proceedings,” the letter says.
“The [IDC] is a state-owned company and a ‘public entity’… It has invested R6.3 billion in THL’s business rescue… R2.3 billion in post commencement finance and R4 billion in direct funding to Vision, and has been called upon to provide further emergency funding given THL’s financial distress as at December 2025.”
The Public Investment Corporation holds about 14.24% of the shares in Tongaat, much of which represents investments emanating from the Government Employees Pension Fund.
According to RGS’ attorneys, it is a matter of significant public interest and importance that both the provision and use of public funds by Vision and THL be investigated since the business rescue practitioners have concluded that THL cannot be rescued despite the advancement of R6.3 billion of public funds.
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THL, a major pillar of the KwaZulu-Natal economy, was placed under business rescue in October 2022 following accounting irregularities and unsustainable debt.
The sugar production giant supported over 185 000 jobs and over 21 000 farmers, generating about R7.8 billion in revenue in the 2023 financial year.
Disputed rescue process and looming liquidation
RGS claims that Vision delayed acquiring the lenders’ claims for 16 months, triggering the collapse of a proposed debt-to-equity conversion and forcing an alternative asset sale that could see Tongaat delisted and liquidated.
Despite the billions of rands committed, business rescue practitioners reportedly concluded in December 2025 that the company could no longer be rescued and that liquidation proceedings were imminent.
RGS argues that the scale of public funding, the lack of transparency around its use and the risk of mass job losses warrant urgent parliamentary scrutiny to ensure accountability and protect public money.
Scopa chair Songezo Zibi said he could not confirm receipt of the complaint as he and the committee staff were on leave.
Rescue practitioners reject allegations
According to the letter, THL’s group-wide production facilities have the capacity to produce 1.5 million tons of raw sugar, 750 000 tons of refined sugar, 400 000 tons of animal feed and 50 million litres of ethanol annually.
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During peak sugar season, the letter says, THL’s operations employ over 23 000 people and support over 185 000 job opportunities, providing livelihoods to over 21 000 farmers.
The lawyers point out that the prospect of THL’s business rescue failing is correctly described in its business rescue plan as “a major humanitarian and financial catastrophe”.
According to THL Business Rescue Practitioners (BRP), the complaint was inaccurate and a misrepresentation.
The BRPs have not applied for THL liquidation and any assertion to the contrary is false.
“The letter cannot be construed as a credible request for an investigation. Instead, it is the latest in a long line of vexatious attempts by RGS to scupper the THL business process after RGS withdrew its business rescue plan proposal at the last minute, before the creditors meeting to vote on the RGS or Vision plan,” the BRP said.
According to BRP, the IDC’s mandate was to promote industrial and economic development in South Africa and the region.
So, the BRP argued, IDC’s funding of the THL business rescue process aligned with this core mandate.
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