The latest developments follow a closed-door meeting convened in Durban on 23 October by KwaZulu-Natal Police (KZN) Commissioner Lieutenant-General Nhlanhla Mkhwanazi.
According to a letter from South African Canegrowers Association (SA Canegrowers) Chairperson Higgins Mdluli to sugar cane growers, the meeting was called after the Zulu Royal House allegedly lodged formal allegations with the South African Police Service (SAPS) about how the Vision Sugar South Africa transaction had been represented and concluded.
Mdluli said the Hawks would appoint a dedicated team to investigate the allegations, with oversight from Mkhwanazi.
“We emphasise that these are allegations at this stage, but they do have serious and immediate consequences for the South African industry. At the meeting, [Police] Commissioner Mkhwanazi asked the IDC [Industrial Development Corporation] to pause any further payments still due under the Vision transaction while the investigation runs, starting immediately,” he said.
The meeting was attended by representatives of the IDC, Tongaat Hulett (THL), the South African Sugar Association, the royal house, organised labour, grower and business organisations, and the KZN Department of Community Safety.
Businessman Robert Gumede, who leads Vision Consortium, the approved buyer of THL’s businesses and assets, was not invited to the meeting. KZN SAPS has not publicly explained why Vision was not included.
Speaking to the media outside the meeting venue, KZN police spokesperson Colonel Robert Netshiunda confirmed that Vision was not represented at the meeting. However, he would not publicly disclose the full details of the allegations or confirm that the investigation specifically targets Vision or any named individual.
The Vision Consortium, led by Gumede, is pursuing the acquisition of Tongaat Hulett through its investment vehicle, Vision Investments 155. Its wholly owned subsidiary, Vision Sugar South Africa, is the entity identified to acquire Tongaat Hulett’s South African assets and operations.
IDC funding under scrutiny
The immediate concern expressed by sugar cane growers is whether THL will have enough cash to settle outstanding payments for cane delivered to its mills, while maintaining operations during the critical milling season.
Mdluli said Mkhwanazi had asked the IDC to pause any further payments still due under the Vision transaction while the investigation proceeds.
According to SA Canegrowers’ letter, this includes payments to Standard Bank, and has implications for THL’s post-commencement financing arrangements. However, the precise nature and value of the payments affected have not been publicly clarified.
Standard Bank is central to the transaction’s financing arrangements as it was among THL’s original secured lenders, and later provided Vision with a loan to acquire the claims held by the lender group. The loan was supported by an IDC guarantee of R1,3 billion.
THL remains reliant on IDC funding to maintain its operations while the business rescue process is completed.
According to Mdluli, THL confirmed at the meeting that October salaries had been paid, but the company did not have sufficient funds to make its month-end grower payments without additional financing.
“SA Canegrowers made clear in the meeting that payment to growers must be treated as an absolute priority. We asked that the impact of the situation on about 18 000 growers be put directly to the IDC board,” he said.
The IDC held an emergency board meeting over the weekend of 24 and 25 October to consider extending further post-commencement funding to THL to cover the cash shortfall. The outcome of the meeting has not been made public.
The corporation was also engaging with the director-general of the department of trade, industry and competition and the Minister of Trade, Industry and Competition Parks Tau, while Mkhwanazi was expected to brief the KZN premier, the national police commissioner and the police minister.
The outcomes of these engagements have not been made public.
SA Canegrowers also said a virtual meeting had been scheduled for 26 October to provide both company and industry stakeholders with further feedback on grower payments and the continued operation of the mills.
Resulting from the meeting, in a subsequent letter to growers, dated 27 October, Tongaat Hulett Sugar South Africa Acting Managing Director Avinash Gobind said the company was awaiting confirmation from Vision and the IDC that the transaction would proceed as planned.
“Further to our engagement yesterday [26 October] with grower leadership regarding the timing of the outstanding grower payments, we wish to provide the following update and clarification. We are currently awaiting confirmation from Vision and IDC that the Vision transaction will proceed and will be implemented by Monday, 2 November 2026, in accordance with the implementation timetable communicated and committed to by Vision.
“Subject to receiving confirmation from Vision and the IDC, and the transaction being implemented as contemplated, Vision expects to process grower payments on Wednesday, 4 November 2026, with the funds expected to reflect in growers’ bank accounts by Friday, 6 November 2026,” Gobind said.
“We recognise the importance of these payments to growers and appreciate the uncertainty and cash-flow pressure that the delay has caused. The business rescue practitioners and management continue to engage closely with the relevant parties to ensure the remaining implementation steps are completed as quickly as possible. We will communicate promptly should there be any material change to the above timetable. We thank growers for their continued patience and understanding.”
Mounting cash-flow pressure for growers
For growers, the uncertainty extends well beyond the timing of a payment.
Speaking to Farmer’s Weekly, growers said that revenue from cane deliveries is used to cover harvesting and transport costs, wages, fertiliser, fuel, maintenance, and other expenses necessary to keep farms operating.
They added that a delay could place pressure on their ability to pay contractors and workers, service debt, and prepare for subsequent production cycles.
Small-scale grower Paul Ntombela expressed frustration at the repeated setbacks facing THL.
“Tongaat Hulett has been through so much already, and just when there is hope that things might finally stabilise, another crisis comes along. How much more can this company take? Government needs to step in and help save Tongaat Hulett before it is too late,” he said.
Another grower, who asked to remain anonymous, said the uncertainty made it difficult to manage farm finances.
“We have bills to pay, workers to pay, and farming operations to keep running. We depend on the money we receive for our cane. If those payments are delayed or stopped, how are we supposed to keep going? We need clear answers about whether we will be paid and when,” he said.
According to Mdluli, SA Canegrowers remains committed to protecting growers’ interests and working to ensure that payments can be made and the mills remain operational.
“We share your deep concern about the seriousness of the situation. SA Canegrowers is fully engaged and will keep fighting for growers’ interests and to do everything possible to ensure that the payments can be made and the mills remain open,” he said.
Royal house seeks greater transparency
The allegations follow earlier concerns raised by the royal house about the transparency of the proposed transaction, including its ownership structure, funding arrangements, and anticipated benefits for workers, growers, and affected communities.
The royal house has become increasingly involved in efforts to secure transparency and protect the livelihoods linked to THL, particularly those of small-scale black sugar cane growers farming on land administered by the Ingonyama Trust, administered by the Ingonyama Trust Board on behalf of King Misuzulu kaZwelithini.
The royal house’s involvement dates back to February this year, when King kaZwelithini instructed his chancellor, Inkosi Malusi Zondi, to intervene in efforts to prevent THL’s liquidation.
Zondi engaged Gumede and government leaders, while the King kaZwelithini appealed to government and the private sector to save the company.
The royal house also called for small-scale black growers to receive priority payment and has questioned whether the proposed rescue deal will deliver on commitments to workers and communities, particularly regarding ownership and economic participation.
Following a meeting in August during which Gumede and the Vision Consortium outlined plans to diversify THL into ethanol production and electricity generation, the royal house raised concerns about whether the proposed benefits would be delivered.
In September, Zondi reportedly wrote to Tau demanding clarity on the transaction’s ownership and funding arrangements, as well as the proposed benefits for growers, workers, traditional leaders, and affected communities.
Zondi reportedly gave government a strict five-day ultimatum to clarify the exact mechanics of the deal, warning that the royal house would pursue “appropriate lawful measures to enforce transparency” if kept in the dark.
He accused the business rescue process of shutting out the very people carrying the actual operational risk and demanded a formal, transparent audit of how the transaction directly benefitted traditional leaders and community councils, more than 15 000 small-scale black sugar cane growers and mill workers, local contractors, and rural economies.
Zondi also raised questions about the IDC’s proposed 25% equity stake in Vision’s Southern African sugar operations, seeking clarity but not publicly objecting to it.
A business rescue process years in the making
THL has been in business rescue since October 2022. After the original Vision sale agreements fell through in February 2026, the business rescue practitioners applied for provisional liquidation, citing the lack of a reasonable prospect of rescuing the company under the existing deal.
However, a revised agreement involving Vision, the IDC, and the business rescue practitioners was reached in June, and the liquidation application was withdrawn.
In a notice dated 12 October, Tongaat Hulett said its R2,5-billion post-commencement funding facility had been extended to 30 November 2026 to keep the business operating while the transaction is finalised.
However, the new criminal investigation has raised fresh questions about whether the deal can be completed on time and whether sufficient funding will be available to keep THL operating and pay growers.
