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Tongaat Hulett

Tongaat Hulett is an agriculture and agri-processing business, focusing on the complementary feedstocks of sugarcane and maize. The company had its origins on the North coast of KwaZulu-Natal, specifically the town of Tongaat (now oThongathi). The company was formed as a result of a merger between the Tongaat Sugar Company founded by Edward Saunders and Hulett's Sugar founded in 1892 by Liege Hulett.[3] Company stock is listed on the Johannesburg Securities Exchange. Its core businesses are sugar, starch and property management.

In the 2014/15 season, 1.314 million tons of sugar were produced.[4]

Operations

South Africa

  • The company head office is located at Amanzimnyama, Tongaat near Durban.
  • Sugar mills are located at Maidstone, Darnall, Amatikulu and Felixton.
  • A central refinery is in Durban
  • Animal feeds operation (Voermol Feeds)

Mozambique

  • Tongaat Hulett Açucar, Maputo
  • Açucareira de Xinavane Xinavane Mill, Xinavane, Manhiça District, Maputo Province
  • Açucareira de Moçambique Mafambisse Mill, in Mafambisse, Dondo District, near Beira, in Sofala Province

Eswatini

  • Tambankulu Estates, Mhlume – The company operates two agricultural estates on the Mbuluzi River.

Zimbabwe

Tongaat Hulett's had three sugar estates in Zimbabwe in Chiredzi District and they bordered one another.

  • Triangle Estate in Triangle, Zimbabwe
  • Hippo Valley Estates, listed on the Zimbabwe Stock Exchange.
  • Mkwasine Estates is now occupied by newly resettled farmers Chiredzi District

Animal feeds

Voermol Feeds, based in Maidstone, produces molasses-based animal feeds.

Artificial sweeteners

Cape Sweeteners, based in Durban, is a subsidiary of Tongaat Hulett Sugar, producing artificial sweeteners including; aspartame, neotame, acesulfame-K, fructose, sodium saccharin, sodium cyclamate, polydextrose, maltitol and lactitol. It is the exclusive South African agent of Nutrasweet's aspartame and neotame

Starch

Tongaat Hulett Starch, previously African Products is Africa's largest producer of starch and glucose, produced at five South African factories.

Land development

Tongaat Hulett Developments is a land conversion and development company that carries out land conversion activities by collaborating closely with the public sector, communities and other businesses.

Corruption scandal and looting

At the end of 2018, the CEO, Peter Staude took early retirement and the chief financial officer, Murray Munro, went on sick-leave. In January 2019, a new CEO was appointed. In February 2019, the company announced a drop in expected profits as well as a liquidity crisis.

In May 2019, the company announced that its published financial results could not be relied on and that the company's equity (the value of the business after liabilities) in its 2018, financial results has been overstated by between R3.5 billion to R4.5 billion in addition revised financial reports would be published in October 2019. The Zimbabwean operation of Tongaat-Hulett has also not been able to provide reliable financial reports in 2019 on time. The auditing firm, PricewaterhouseCoopers were employed to do a forensic audit. The diligence of the company's regular auditors, Deloitte has been called into question. The company suspended trading on the Johannesburg Stock Exchange. In late June 2019, the company laid a criminal charge against an unnamed executive. In an effort to survive the company is cutting costs and has sent retrenchment letters to 5000 employees. In August 2019, the company decided to remove itself from the list of traded companies on the London Stock Exchange.

In February 2022, seven people connected with the scandal namely, Peter Staude, Murray Hector Munro, Michael Edward Deighton, Rory Edward Wilkinson, Kamasagrie Singh, Samantha Shukla and Gavin Dykes Kruger appeared in the Durban Specialised Commercial Crimes Court and were granted bail.[5] The appeared in court again in April 2022.[6]

External links

References

  1. Tongaat Hulett:Audited results for the year ended 31 March 2013, May 2013, Retrieved: 23 May 2013.^
  2. Tongaat Hulett:Employees as of 31 March 2013, March 2013, Retrieved: 31 March 2013.^
  3. Berakofi. About Tongaat Hulett Group BeraPortal.com, 2021-04-09, retrieved 2023-03-02^
  4. Tracy Hancock. Tongaat Hulett starch and cellulose sees record year, keen on cogen www.engineeringnews.co.za, retrieved 2023-03-02^
  5. Penelope Mashego, Kaveel Singh. Former Tongaat Hulett CEO and other ex-directors granted bail in R1.5bn fraud case Fin24, 10 February 2022, retrieved 26 April 2022^
  6. Jolene Marriah-Maharaj. Tongaat Huletts senior executives charged over R3.5 billion fraud may face additional charges iol.co.za, 11 April 2022, retrieved 26 April 2022^
  7. <ref name="BD20180806"> Nick Hedley. Tongaat Hulett CEO Peter Staude to go sooner than expected Business Day, 6 August 2018^
  8. Sandile Mchunu. Tongaat Hulett hopeful new CFO can bring sweetness back to group Business Report, 12 February 2019, retrieved 13 August 2019^
  9. Karl Gernetzk. Tongaat Hulett falls 20% to 25-year low Business Day, 26 February 2019^
  10. Banele Ginindza. Tongaat Hulett renews its cautionary notice Business Report, 25 April 2019, retrieved 13 August 2019^
  11. Tongaat Hulett's listing has been suspended - here's what we know about the crisis at the sugar giant businessinsider.co.za, 10 June 2019, retrieved 13 August 2019^
  12. Memory Mataranyika. Tongaat Hulett's Zim unit misses extended deadline to release financials Fin24, 2 August 2019, retrieved 13 August 2019^
  13. Tanisha Heiberg. Tongaat Hulett to delist from LSE Moneyweb, 2 August 2019, retrieved 13 August 2019^
  14. Paddy Harper. Sugar barons' greed costs workers The M&G Online, 19 July 2019, retrieved 13 August 2019^
  15. James de Villiers. Tongaat Hulett scandal: Deloitte replaces senior auditors and launches an internal investigation businessinsider.co.za, 4 June 2019, retrieved 13 August 2019^
  16. Sizwe Dlamini. JSE suspends Tongaat Hulett listing Business Report, 10 June 2019, retrieved 13 August 2019^
  17. Loni Prinsloo. Criminal case opened against former Tongaat Hulett executive Business Day, 27 June 2019^
  18. Penny Fourie. Thousands to lose their jobs at Tongaat Hulett North Coast Courier, 22 May 2019, retrieved 13 August 2019^