Serious allegations about the sale of one of South Africa’s biggest companies
Tongaat Hulett, one of South Africa’s biggest sugar producers, is back in the spotlight following serious allegations regarding its sale, reportedly lodged with the police by the Zulu Royal House.
In a statement, KwaZulu-Natal Police Commissioner Lieutenant-General Nhlanhla Mkhwanazi requested that the Industrial Development Corporation (IDC) suspend any outstanding payments linked to the transaction while the matter is investigated.
The latest developments follow a closed-door meeting convened by Mkhwanazi in Durban on 23 October.
The meeting was called after the Zulu Royal House allegedly submitted formal complaints to the South African Police Service (SAPS) about how the Vision Sugar South Africa transaction was represented and concluded.
This is according to a letter from the chairperson of the South African Canegrowers Association (SA Canegrowers), Higgins Mdluli, to sugar cane growers.
Mdluli said the Hawks would establish a dedicated team to investigate the allegations, with Mkhwanazi overseeing the process.
“We emphasise that these are allegations at this stage, but they do have serious and immediate consequences for the South African industry,” he said.
Mkhwanazi reportedly asked the IDC to immediately pause further payments due under the transaction until the investigation had progressed.
The meeting included representatives from the IDC, Tongaat Hulett, the South African Sugar Association, the Zulu Royal House, organised labour, grower and business organisations, and the KwaZulu-Natal Department of Community Safety.
However, representatives of Vision Consortium, the approved buyer of Tongaat Hulett’s businesses and assets, were not invited.
KZN police spokesperson Colonel Robert Netshiunda confirmed that Vision was not represented but declined to disclose the full details of the allegations or confirm whether the investigation specifically targeted the consortium or any individual.
The allegations come at a particularly significant time for Tongaat Hulett, which was removed from the Johannesburg Stock Exchange (JSE) on 3 November 2026, ending a 74-year listing.
The company’s shares were suspended on 20 July 2022 after it failed to publish its annual financial results.
The collapse of a giant
A business rescue plan adopted by creditors in January 2024 initially proposed recapitalising the company through a debt-for-equity arrangement.
However, shareholders rejected the equity subscription supporting the proposal in August 2024, forcing business rescue practitioners (BRPs) to pursue the alternative of selling the company’s businesses and assets.
The Vision Consortium, through its investment vehicle, Vision Investments 155, and its subsidiary, Vision Sugar South Africa, was selected as the buyer of the South African operations.
The JSE confirmed that Tongaat Hulett’s delisting was consistent with the adopted rescue plan. The company’s directors and BRPs said they would not oppose the decision or request additional time to address the listing requirements.
The delisting does not include an offer to shareholders, and they will receive no payment as a result.
Tongaat Hulett has also warned that shareholders should not expect future distributions, as the business rescue plan does not anticipate any value accruing to them once the assets and businesses have been disposed of.
The company’s collapse marked a sad end for a business that once supported close to half a million livelihoods across South Africa.
It supported more than 25,000 jobs and accounted for approximately 77% of sugar industry revenue in KwaZulu-Natal.
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