Lieutenant-General Nhlanhla Mkhwanazi, the KwaZulu-Natal provincial police commissioner and national coordinator of the fight against organised crime, has taken personal charge of a criminal investigation into the liquidation of Tongaat Hulett, convening a closed-door meeting with sugar growers, the Industrial Development Corporation and the Zulu Royal Household in Durban on Friday 23 October.
SAPS spokesperson Colonel Robert Netshiunda confirmed the investigation is active but declined to name the complainant or say when the docket was opened, citing operational sensitivity, according to IOL's report on the investigation.
Why the police are involved in a business rescue
The meeting at KwaZulu-Natal police headquarters brought together Tongaat Hulett's business rescue management, the IDC, KwaZulu-Natal sugarcane growers and representatives of the Zulu Royal Household. Media were barred, and special attendees asked not to be interviewed.
Mkhwanazi's involvement elevates a matter that has played out in courtrooms and creditor meetings for four years into a criminal case. For Botswana, the stakes are direct: the current rescue plan would place the IDC's R2.75 billion post-commencement finance into a 25% equity stake in Vision Group's southern African sugar operations, which span South Africa, Zimbabwe, Mozambique and Botswana.
The IDC, Vision and the business rescue practitioners signed a binding agreement in June 2026. Vision, a consortium led by Mpumalanga businessman Robert Gumede, already held a large portion of Tongaat's bank debt. Terris Sugar, a Mauritian company linked to the RGS Group, is challenging the selection process in court.
The accounting scandal behind the collapse
Tongaat Hulett's troubles trace to 2019, when PwC investigators found management had inflated profits by R12 billion over several years through fictitious cane supply agreements and early recognition of land sales.
The scandal led to a criminal complaint and the suspension of the company's shares on the JSE in July 2022 after it failed to publish audited results. Tongaat entered voluntary business rescue on 27 October 2022, and all non-executive directors resigned days later.
A first recapitalisation attempt through Magister Investments, a Mauritian vehicle linked to Zimbabwe's Rudland family, collapsed in 2024 amid concerns about a 41% mystery shareholder and links to Gold Leaf Tobacco, which faces allegations of illicit cigarette trading. Creditors adopted the current rescue plan in January 2024, requiring the sale of all assets to a new owner.
Criminal charges against former executives
Seven former Tongaat Hulett executives and a former auditor were arrested and first appeared in the Durban Specialised Commercial Crime Court on 10 February 2022 on fraud charges initially valued at R1.5 billion, later increased to R3.5 billion.
Peter Staude, Murray Hector Munro, Michael Edward Deighton, Rory Edward Wilkinson, Kamasagrie Singh, Samantha Shukla and former Deloitte audit partner Gavin Dykes Kruger were each released on R30,000 bail. The matter was last heard in the Durban High Court on 10 September, when it was postponed to 18 March 2027 after the State requested time to secure a fresh racketeering certificate.
A separate legal setback over levies
On 24 August, the Constitutional Court ruled against Tongaat in a separate dispute with the South African Sugar Association over R517 million in industry levies, refusing leave to appeal.
Tongaat Hulett's shares are set to leave the JSE on 3 November, with pay fears mounting before the exit, The Rio Times reported. For a country whose own sugar industry has faced its own pressures, the outcome of the Vision deal and the criminal probe will determine who controls a regional sugar processor with operations on Botswana soil.
What happens next
The criminal investigation is active but its scope remains undisclosed. The Terris Sugar challenge to the Vision selection continues in court. And the fraud case against the former executives returns to the Durban High Court in March 2027.
Mkhwanazi's decision to convene growers and the Zulu Royal Household signals that the police intend to manage tensions around the liquidation, not merely investigate them. Whether that produces accountability or another round of litigation is now the question hanging over Tongaat's remaining assets.
Frequently asked questions
Who is leading the Tongaat Hulett organised crime investigation?
Lieutenant-General Nhlanhla Mkhwanazi, KwaZulu-Natal's provincial police commissioner and national coordinator of the fight against organised crime, has taken personal charge of the investigation.
What does the Tongaat Hulett liquidation mean for Botswana?
The current rescue plan would give the IDC a 25% equity stake in Vision Group's southern African sugar operations, which include Botswana. The deal is still being contested by Terris Sugar in court.
When will the former Tongaat Hulett executives face trial?
The fraud case against seven former executives and a former auditor was postponed to 18 March 2027 in the Durban High Court, after the State requested time to secure a fresh racketeering certificate.