The Black Business Federation (BBF), the African Farmers’ Association of South Africa (AFASA), and the newly formed South African Traditional Leaders Organisation (SATLO) have turned up the heat on the Industrial Development Corporation (IDC) to disclose full details of the funding provided to the Vision Group for the rescue of struggling sugar giant Tongaat Hulett.
On Thursday, the three organisations staged a picket in Durban and marched to the IDC’s provincial offices to hand over a memorandum outlining their demands on the matter.
The march, led by the Secretary of the BBF, Wonderboy Jaca and activist Ngizwe Mchunu, was joined by about 3000 protestors who came from tribal authorities in northern KwaZulu-Natal that rely on sugarcane farming and supply to Tongaat Hulett.
Speaking outside the IDC offices on Samora Machel Street in central Durban, Jaca said they are acting in the interests of economic transformation, South African businesses, workers, farmers, growers and affected communities, and they call upon the IDC to provide full and meaningful disclosure regarding the restructuring, ownership, funding, control and future direction of Tongaat Hulett Limited, its South African operations and assets, and all subsidiaries, affiliates, associated entities and operations located in other African countries or jurisdictions.
He added that Tongaat Hulett is far more than a corporate asset as it stands as a transformative force in the economy, serves as a conduit for local economic emancipation, a generator of employment opportunities, and a vital supporter of small-scale farmers and growers.
He said its operations, agricultural footprint, landholdings, employees, growers, suppliers, customers and surrounding communities form part of a strategically important South African and regional economic ecosystem.
“The BBF is particularly concerned that decisions affecting ownership, funding, land, employment, procurement and cross-border subsidiaries may have direct consequences for South African ownership, employment, management control, capital allocation, tax contributions, skills development, supplier opportunities and the future of the group as a whole.
“Given the IDC’s role as a South African development finance institution and its involvement in the restructuring of Tongaat Hulett, the BBF believes that the South African public is entitled to clarity regarding how South African economic, employment, transformation, localisation and developmental interests are being protected across the entire group,” Jaca said outside the IDC offices.
Part of the BBF’s demands is the disclosure of the complete current and proposed ownership structure applicable to Tongaat Hulett and all entities within the group, including its South African operations and cross-border subsidiaries.
In particular, Jaca said, the IDC is requested to disclose or clarify the complete list of Tongaat Hulett subsidiaries, affiliates, joint ventures, associated companies and special-purpose vehicles in South Africa and other countries.
The jurisdiction in which each entity is incorporated, registered or operating, the percentage shareholding or economic interest held by each participant in the Vision Group and/or any successor ownership structure in the holding company and in each relevant subsidiary or operating entity, amongst other demands.
