Sanyati to be liquidated
Fin24

Sanyati to be liquidated

2012-07-11 08:11

Johannesburg - An engineering firm owed R60m by the Free State provincial government is to be liquidated, Business Day reported on Wednesday.

A business rescue had been attempted for Sanyati Holdings [JSE:SAN], one of the government's major private partners, but the appointed rescue practitioner Trevor Murgatroyd recommended the company's liquidation on Tuesday.

Murgatroyd made the proposal after Sanyati's rescue plan collapsed.

Sanyati was not sustainable without a substantial capital injection, which was not possible.

The company's bank cancelled Sanyati's overdraft facilities and froze its accounts, effectively strangling the business, he said.

Free State government spokesperson Wisani Ngobeni said the roads department had faced "resource challenges" and regretted the liquidation. Sanyati employees were likely to lose their jobs.

President Jacob Zuma said on Friday the government would take drastic measures to ensure service providers were paid within a month.

Presidency spokesperson Harold Maloka said a national intervention team led by the Treasury was looking at the Free State roads department.

He said the presidency would make sure all government departments paid suppliers within 30 days, as required by the Public Finance Management Act.


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Comments
  • jacques.shepperson - 2012-07-11 08:24

    instead of creating jobs more is lost.

      christian.denyschen - 2012-07-11 08:36

      Exactly my thoughts the anc knows only how to destroy and not create, when will their voters realize this so we can rid this country of the cancer that is kill it.

      steve.ritchie.739 - 2012-07-11 08:38

      Another major cANCer failure. More unemployment and hardship. Just shows just how much they really care. Trolls.

  • Maredi - 2012-07-11 08:30

    Keep talking Showerman, nobody believes what you say anymore. Just focus on praising past ANC leaders since you got nothing to offer.

  • shaylene.stenger - 2012-07-11 08:42

    and they want to nationalize mines.....

  • Dawn Campbell Gibson - 2012-07-11 08:48

    More unemployment - more crime - well done ANC - you have my vote - against you!!!

  • Philippe Chirnside - 2012-07-11 08:48

    And so few people know how downplayed this is. They focus on the liquidated company but fail to mention that Sanyati owe hundreds of creditors money, many of whom will now be forced to close down, putting many more than just Sanyati's employees out of work. This is the ripple effect of governments incompetence that never seems to be highlighted the way it should.

      lisa.staden - 2012-07-11 12:08

      Many of those "creditors"were hoping that the "business rescue"would work . . . that was just another stalling tactic. I have yet to see a successful business rescue. I feel it gives false hope to the creditors (who still carry that debt while they deciding on the rescue) as well as the employees that hope and pray they still might keep thier jobs. I have seen and heard of so many businesses closing because of the money owed to them by government. When are they going to realise that today if you get offered a contract with the government, pick up your tent and RUN!!! I really feel for those poor people who have lost here. Its just not fair!

  • stille.waters.5 - 2012-07-11 08:49

    So typical. These people are out of an income because the useless local gov cant manage their money. Im sure they have legal recource against this abortion called the anc.....

  • Danie - 2012-07-11 08:50

    Decline in jobs, under Zuma's gaurd? Do he spend to much time keeping all his wives and girlfriends sexually satisfied . to impliment employment policies ?

  • lynn.syme.1 - 2012-07-11 08:56

    30 000 odd jobs were lost this last month. Add this to the month before and you get 83 000 odd jobs lost over a two month period. Hmmm ANC sure has a good track record in building 5 million jobs then! Must be a simple arithmetic problem. What they mean't to say is that 5 million jobs will be lost. They just dont know what the plus or minus button on the calculator means yet.

  • badballie - 2012-07-11 09:00

    Lets hope other companies learn something from Sanyati's misfortune, I know they won't but I can always hope that directors and shareholders will one day learn to put good business practice and employee welfare before their own profit driven greed. Properly run and controlled companies refuse to have anything to do with government contracts because getting paid for services rendered to government and municipalities is such a huge challenge.

      Klaus - 2012-07-11 09:08

      50% with confirmed order, 10% retention to cover warranties, balance 40% pro ratio as job progresses as per signed tender, no payment - no work. What are the odds, workers now out of work, still vote CancER ?

      karusha.moodley.14 - 2012-07-11 09:25

      The biggest infrastructural spender in the country is meant to be the government... You show me 1 company involved in construction or civil engineering that is not involved with the government. Also, it was the shareholders buying into the company and the directors who managed the money that gave those employees a job in the first place. If they were not out to make a profit, who do you think was going to give those employees a job? Your fabulous government????

  • mofstok - 2012-07-11 09:00

    So much for any roads being repaired in the FS now. If I were the owner of a private firm, I would have serious second thoughts about entering into a tender process to provide local government with any services. Not that I would be politically connected enough to even get awarded the tender due to the "transparent" process.

  • Erna - 2012-07-11 09:34

    By admitting to 'resource challenges' and 'regretting the liquidation' the Free State provincial government is admitting liability. The anc should be ashamed of itself! Bet if the company was owned by one of their mates the money would have been found.

  • Erna - 2012-07-11 09:41

    Surely someone must be held accountable. If I don't pay an account of a couple of hundred I am harrassed endlessly till I pay!

  • baloyi.leonard - 2012-07-11 09:52

    All this money owed was feed to the ANC members i guess.

      lisa.staden - 2012-07-11 12:11

      While they were protesting in the streets against The Spear!!

  • dries.swanepoel.94 - 2012-07-11 10:12

    In the end of the day, the people appointed do not understand the gravity of their actions. They do not understand the concept of cause and effect.

  • faizieishlah.shabalala - 2012-07-11 11:08

    Eish sorry. But a least Ive got the latest GoogleBerry phone to show mt buddies

  • danmotaung - 2012-07-11 11:58

    Useless Ace and his Chommies. The construction of some roads has come to a halt. Between Bethlehem and Lindley the road is a mess with stop and go controls until when, I don't know. This Province needs an intervention similar to Limpopo sooner rather than later. Imagine the workers who will soon be running down the streets looking for some bread to put on the table because of incompetence.

  • fhatuwani.mainganya - 2012-07-11 13:46

    It is very much dissapointing to see young South Africans loose their job just because of corrupt government departments. Our president's office talks about job creation every morning. What is happening actually is the inverse and its happening right in front of their eyes. An action should be taken against those failing to pay contactors on time.

  • Ernst88 - 2012-07-11 17:06

    I wonder if the govt will still pay the 60m owed to the company after liquidation.

  • hanlie.visagie - 2012-07-17 10:42

    How do we face our employees – REAL PEOPLE – they don’t have a job any longer,in deep trouble. Sanyati has filed for liquidation because Mr Zuma’s Nat Treasury and Roads Dep did not pay in time for work done.Our people who will loose their jobs, houses,go hungry thanks to this Government,not paying, I mailed Treasury asking for help just got an emailthey are working on this non payment problem with F S and KZN Dep with regard to Sanyati!! too late, we are in the business to create jobs, Mr Zuma has destroyed thousands jobs he’s contradicting his own statements! promises of job creation, roads, houses, water ext LOOK WHAT his Dep that failed to do their job has accomplished – Government does not care for is the people that will suffer due to incompetence of Government Dep, he want to promote small business, and will take drastic measures with regard to Sanyati’s late payments, failure to pay in time is sabotage to Governments objectives Mr Zuma said,we want a bailout plan from Mr Zuma himself for us and our employees (there is an Act that have PROTECTED Sanyati “Business Rescue” from us we need Mr Zuma to act on behalf employers for thousands of people, he will have to be our Business Rescue,protect us from foreclosure, and our banks we can notpay our Compensation fund “fund protection our employees” ,we have wife’s, mothers, fathers and children who depend on our income, THANK YOU MR ZUMA, will send our employees to you,you can pay their salaries this month.

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