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Mozambican government accuses South African shareholder of mismanaging sugar plant
2:49 CAT | 12 Jul 2019
File photo: Macauhub
The Mozambican government has pointed to mismanagement as the cause of the decision by the South African company Tongaat Hullet to walk away from the Açucareira de Moçambique sugar plant in Mafambisse, Sofala province, and says it is looking for new investors for the company.
In June, Tongaat Hullet told workers and the Mozambican government that it was pulling out because financial difficulties were rendering continued operations unfeasible.
Mozambique’s Minister of Industry and Commerce, Ragendra de Sousa, is quoted by the daily newspaper Notícias as saying that the financial difficulties faced by Tongaat Hullet are the result of mismanagement.
“We are attentive and talking to those interested, so that the production of sugar does not stop, but, unfortunately, the person who mismanaged [production] is not even Mozambican,” Ragendra de Sousa said.
Tongaat Hullet holds 85% of Mafambisse sugar, and the Mozambican state Instituto de Gestão dos Participações do Estado (IGEPE) controls the remaining 15%.
“IGEPE is negotiating the financial part and we are heavily involved in looking for new managers so the plant does not stop,” he added.
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Source: Lusa
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