Tongaat Hulett goes after former executives in R450-million civil claim

Tongaat Hulett is acting on forensic findings against former senior executives accused of overstating company profits over many years, by instituting a civil claim of R450-million.

In a statement, the company said their actions led to a considerable loss for shareholders and many stakeholders.

Tongaat Hulett instituted civil proceedings against the executives at the Pietermaritzburg High Court in 2020.

The former employees in the civil claim are CEO Peter Staude, chief financial officer Murray Munro, and finance executive Sean Slabbert.

Slabbert was a director of Tongaat Hulett Sugar South Africa.

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Findings in the forensic report include unjustified enrichment, damages consequent upon the breach of their fiduciary duties and misrepresentation.

The company is also seeking to have the former executives declared delinquent directors.

It is expected the trial will begin in early 2023.

“While the process has been significantly delayed through the filing of a number of interlocutory objections on highly technical arguments by the defendants, Tongaat Hulett is determined to pursue this matter and do everything within its power to secure a fair outcome for our shareholders,” said company secretary, Johann van Rooyen.

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