Today's Labour News

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TegetaCity Press reports that according to business rescue practitioner Johan-Louis Klopper, the Gupta family “raped and pillaged” the productive companies they controlled to subsidise unprofitable ones, and to pay for everything from houses to their jet and a game farm.  

This was said last week when he spoke to a room full of the family’s creditors.  He and Kurt Knoop have been appointed to run eight Gupta companies, including the Optimum and Koornfontein coal mines, Shiva Uranium and VR Laser Services, as well as the Guptas’ property investment companies.  Officially, it was the lack of bank accounts that forced the companies into voluntary business rescue, but there were real underlying cash-flow problems, even at fundamentally profitable mining operations, the practitioners admitted to creditors.  On their own, most of the Gupta mines were profitable and perfectly capable of survival, Klopper said.  But an “incestuous” network of intercompany loans allowed money to move freely between entities in the group.  Optimum Coal is owed R2.7bn by other Gupta companies, while Tegeta Mining and Exploration’s biggest creditor is its own subsidiary Shiva Uranium, to which it owes R1.3bn.  Klopper and Knoop were upbeat about the prospects of most of the companies.  “It is our intention to isolate Optimum from the rest of the group so its income goes towards its own future,” said Klopper.

  • Read this informative report by Dewald van Rensburg in full at Fin24
  • Read too, Court dismisses application by Gupta-linked companies against Bank of Baroda closing SA operation, at eNCA

Get other news reports at the SA Labour News home page