VOERMOL RECOGNISED AS A SUPPLIER OF CHOICE

Towards the end of 2021 Voermol was recognised by 2 of its key clients at their supplier awards.

At the OVK gala dinner 3 November Voermol was recognised as their Supplier of the Year, out of about 900 suppliers. Awards were also given to category winners for service and product delivery. Voermol won the following award categories:

• Trade: Store Supplier of the Year 2020/21; and
• Trade and Mechanisation Supplier of the Year 2020/21.

Another big win was Voermol being recognised at TWK Agri’s VIP Suppliers Function 2021 as a Top Supplier for 2020/21, winning a Golden Award. Justin de Haas, Procurement Manager of TWK Agri congratulated Voermol on receiving this award.  

The criteria taken into consideration for this award included:

• Turnover during TWK’s financial year (Sept 20 to Aug 21);
• Service from the supplier;
• Product range and availability; and
• Administration issues with the supplier.

Justin explained that “Another point is the relationship between the supplier and TWK. A company can have the best products and the best prices, but if they are not able to form a relationship with us, or our managers, then you cannot expect it to be mutually beneficial.”

Another example of how we grow and win in teams

TONGAAT HULETT SEEKS R450 MILLION IN CIVIL CLAIMS AGAINST FORMER EXECUTIVES

Tongaat Hulett is committed to its undertaking to act on the findings of the PwC forensic investigations which identified that certain senior executives initiated or participated in undesirable accounting practices which resulted in the company’s profits being overstated over a number of years. This led to the loss of value to our shareholders and many of our other stakeholders.

In September 2020 the company instituted civil proceedings in the Pietermaritzburg High Court against former Chief Executive Officer, Peter Staude, former Chief Financial Officer, Murray Munro and former Finance Executive, Sean Slabbert, who was also a director of Tongaat Hulett Sugar South Africa.

The civil action is based on the findings of the PwC forensic investigation, namely unjustified enrichment, damages consequent upon the breach of their fiduciary duties and misrepresentation.

Tongaat Hulett is also seeking an order declaring them as delinquent directors.

In separate proceedings, Tongaat Hulett Developments, a subsidiary of the group, instituted a civil case in the Pietermaritzburg High Court in February 2020 against the former Managing Director, Michael Deighton.

In total, Tongaat is claiming some R450 million against these past directors and executives. It is anticipated that full trials will be scheduled for early 2023.

As previously disclosed, criminal cases against former executives and senior managers have been opened, both in South Africa and in Zimbabwe and we continue to work with the relevant authorities. In South Africa, the matter is still with the NPA and we understand that a decision on the next steps is imminent.

Tongaat Hulett Company Secretary, Johann van Rooyen said, “While the process has been significantly delayed through the filing of a number of interlocutory objections on highly technical arguments by the defendants, Tongaat Hulett is determined to pursue this matter and do everything within its power to secure a fair outcome for our shareholders.

“Tongaat Hulett is withholding Staude and Deighton’s pensions until the finalisation of the litigation initiated against them. Munro and Slabbert had unfortunately already left the business and withdrawn their pensions by the time the action was instituted.

“The Implementation of sound corporate governance principles is at the very heart of the progress made in our business over the past two years. Our Board, management structures, internal audit, risk and compliance processes, have been considerably bolstered.”

#NotOnMyWatch

Our Tip-off anonymous tool helps stakeholders report any behaviour that goes against our code of ethics. As we create a sweet future for Tongaat Hulett we need to stand up and say no, #NotOnMyWatch to any unethical behaviour across the company. All tip-offs received are anonymous.

A total of 58 reports were received between 1 April 2021 and 15 October 2021. During the same period in 2020, 31 tip-off reports were received.

Each report is investigated. Over those seven months, 25 people were dismissed and/or charged as a result of information received via tip-offs. The status of the various tip-offs received between 1 April 2021 and 15 October 2021 are as follows:

• 58 Total tip-offs received and investigated
• 19 still being investigated
• 25 employees dismissed/charged
• 26 substantiated (proven)
• 13 closed (insufficient evidence)

Tongaat Hulett has invested in additional resources and highly skilled individuals to ensure that we can investigate all issues effectively and fairly. Unethical behaviour will not be tolerated – #NotOnMyWatch. Use the Tip-offs line to see change and action!

Here’s how you can contact Tip-offs anonymous:

Email: Tongaat@tip-offs.com           Website: www.tip-offs.com  

You can find additional Tip-offs contact details here  

PROPOSED EQUITY RAISE BY TONGAAT HULETT LIMITED

The funding is set to bolster both Tongaat’s investment proposition, and its socio-economic legacy across Southern Africa.

Tongaat Hulett today announced a proposed major recapitalisation via a rights offer of new shares, partially underwritten by Magister Investments Limited, a shareholder and strategic partner.

The proceeds from therights offer will be used to sustainably reposition the Group and help secure the future of its approximately 29 000 (at peak harvest season) employees in operations across South Africa, Zimbabwe, Mozambique, and Botswana. The Company’s management team has progressed a turnaround strategy over the past two and a half years, positioning the Group for future growth by improving governance and operational efficiency, reducing debt, and driving cash flow. During this time, Tongaat has achieved a 42% reduction in debt levels through asset disposals, cashflow management and cost reductions. A successful rights offer will further reduce debt significantly, allowing management to focus on repositioning the business for long-term growth.

Tongaat’s two primary focal points are sugar and property. The core strategy is delivering cost leadership as a sugar producer, predominantly focused on South Africa, Zimbabwe and Mozambique, and capitalising on the sizeable portfolio of premier commercial properties.

The Company is exploring the potential for property disposals to further reduce debt, and to provide additional cash flow in the longer term, and the potential for co-investment with developers to create sustainable revenue sources.

The amount of equity capital to be raised and the pricing of the rights offer is yet to be determined, but is expected to allow the Company to reduce debt to sustainable levels. Magister Investments Limited (Magister) will partially underwrite the rights offer up to a maximum of R2 billion, provided that its total shareholding in Tongaat does not exceed 60% immediately following implementation of the rights offer and the underwrite.

The timing to complete the proposed equity raise is dependent upon when the required shareholder, lender and regulatory approvals are obtained, but is expected to be Q1 calendar year 2022. 

Magister is an investment holding company incorporated in the Republic of Mauritius and focuses on long-term investments in agriculture, logistics and other sectors across Southern Africa. Magister is also invested in Agriterra Limited, an AIM listed company in London.

Magister has vast experience in sectors which complement Tongaat’s strategic focus areas and is expected to add value to Tongaat through such experience.

The introduction of Magister adds impetus to Tongaat’s turnaround strategy and advances the objective of creating value for shareholders and Tongaat’s other diverse stakeholders across Southern Africa.

Magister and Tongaat have entered into an agreement committing Magister to partially underwrite the rights offer subject to the adoption of various shareholder resolutions and approvals from the JSE, the Takeover Regulation Panel, the South African exchange control authorities and the competition authorities in South Africa, Zimbabwe, Botswana, Namibia and Mozambique.

A circular will be sent to shareholders with further details on the transaction, and a shareholders meeting will be convened at which the required shareholder resolutions will be proposed.

Tongaat Hulett, which produces approximately 43% of South Africa’s sugar, has maintained its socio-economic contributions during the last two and a half years and will remain a partner of choice for all its stakeholders. The SA sugar operations source approximately 43% of their feedstock from more than 15 000 black farmers and cooperative members. The Company’s successful transformational partnership, Uzinzo Sugar Farming, is the largest black grower in the SA sugar industry.

Tongaat Hulett is currently in a closed period in terms of the JSE Listings Requirements and will publish its interim results on 9 December 2021.

Tongaat Hulett CEO Gavin Hudson said: “A large rights offer, incorporating Magister’s underwriting commitment, is a key step in securing the future of Tongaat Hulett. We look forward to it contributing to a market value of the Company which is more reflective of the underlying value of the Group’s various components.

The rights offer represents a “once off” opportunity to reduce debt significantly and advance the goal of creating a sustainable capital structure, unlocking value, and making Tongaat an attractive investment option. We believe keeping the Group intact provides the most compelling value proposition for all our stakeholders across Southern Africa. Through the proposed re-capitalisation, the Group retains exposure to strong, well-invested sugar businesses in Zimbabwe, Botswana and Mozambique, and continued gains under the Sugar Master Plan for our recovering SA business. This leaves Tongaat well positioned to deliver value over time as it focusses on meeting the long-term demand for sugar across growing African regional markets.”

RICHMOND SUGARCANE FARMER IS #GROWINGASWEETFUTURE

Exciting news in local sugarcane farming! After a big final, where judges were “blown away by the extremely high standard of finalists,”  Richmond sugarcane farmer, Brad O’Neil, has taken the title of KZN Kwanalu  Young Farmer of the Year 2021. Brad’s victory is made sweeter by the fact that he has been chosen to be a Huletts partner.

The victory means O’Neil will go on to represent KZN in the national competition, where he will face contestants from all 9 provinces for the prestigious title.

An 11-year story

As the second generation to serve as custodian of Seafield Farm in Richmond, Brad has focused his tenure on introducing sustainable practices and maintaining strong relationships with his staff by helping them improve their living conditions, secure family insurance policies and further their education and training. Since taking over in 2010, Brad has wanted Seafield to become known for their precise farming methods and overall holistic practices. With a background in wine-making, O’Neil has also started Sugar Baron Craft Distillery, which aims to become a leading producer of high quality rum made from the best sugarcane in the world.

Stories like Brad’s give us more reason to celebrate our nation’s rich sugarcane heritage. The possibility that 2021’s National Farmer of the Year could be a sugarcane farmer, speaks to the significance of the crop and the high standard of sugar production in our country. Not only has sugar been an important theme throughout South Africa’s history, the “strategic crop” continues to be an important driver of economic growth, community development and the survival of countless South Africans.

As proud South African users of Sugar, you are supporting South African farming communities and giving opportunities to farmers who provide employment and inspiration to locals. These are exceptional farmers who pioneer sustainable and innovative practices within their industries.

As a business born and bred in the communities of South Africa, Huletts is a proud supporter of South African communities and their stories. Read about how we are #GrowingASweetFuture for all South Africans: https://www.hulettssugar.co.za/growing-a-sweet-future/

PHISHING SCAM ALERT

It has come to our attention that there is a scam, imitating a Huletts^® competition, that has been circulating on WhatsApp. The competition falsely states that as part of our 129^th anniversary, participants who answer a questionnaire could stand a chance to win R4000.00.

This is a phishing scam where fraudsters aim to access your personal information.

We are alerting our customers through our various Huletts^® social media platforms as well as on our Huletts website.

Please be aware that all our competitions are advertised on our Huletts^® website and/or our social media platforms and NEVER as a shared link on WhatsApp. Online competitions will always be hosted on our website, www.hulettssugar.co.za.

Our competitions always have terms and conditions which can also be found on the website. We will never ask our competition participants for payment in order to win a prize nor do we request your banking details.

If you have received a WhatsApp message of this nature, please delete it and notify those sharing it with you that it is fake. 

 

 

TONGAAT HULETT ACHIEVED B-BBEE LEVEL 2 STATUS

Tongaat Hulett’s Mission is to build our future by creating sustainable value for all our stakeholders. We are proud to announce that we have taken another significant step in living up to this commitment by achieving a Broad-Based Black Economic Empowerment (B-BBEE) Level 2 status in our recent audit for the year ended 31 March 2021.

This is an improvement from a Level 4 status for the previous period. In addition, we also qualify as a Black Owned Entity with 71.75% Black Ownership. This is derived from the makeup of our institutional investors and the sale of a significant asset to a black-owned entity.

This step change is also following on our focused attention on socio-economic development, Enterprise Development, Procurement and skills development.

Tongaat Hulett’s procurement practices support and accelerate the execution of business goals and strategy by emphasizing achieving best value while also advancing social sustainability and ethical practices.

We remain committed to large and small-scale empowerment farming. Our sugar operations in South Africa source 43% of their sugarcane from a total of 15 704 black farmers and cooperative members, who were collectively paid R585 million in the past year. Our successful transformational partnership, Uzinzo Sugar Farming, is the largest black grower in the South African sugar industry and is growing from strength to strength.

A copy of the latest certificate can be found on the company website.

This achievement is another milestone in delivering value to our stakeholders and driving long-term sustainable value as a company.

CELEBRATING WOMEN IN AGRICULTURE

The month of August which is commemorated as Women’s Month is an opportune time to reflect upon women who have made an impact in agriculture.  

Tongaat Hulett is committed to supporting women in agriculture.  By creating and maintaining a vibrant working relationship with its female growers, contractors and all women in management and leadership positions in the various projects, Tongaat Hulett is creating a sustainable future for all. 

Nhlanhla Ntuli, Land Reform and Small-Scale Grower Manager, said over the years, the company has implemented a wide range of tailor-made farmer support models to ensure that there was structured and targeted farmer support. The models include the communal leasehold model; the small-scale grower support model; and the land restitution programme to support communities whose land has been restituted.  

 

Under the small-scale grower support model, there are 10 038 growers working in partnership with Tongaat Hulett and 51 percent of these growers are female. The growers are responsible for directing all farming activities ranging from land preparation to the development of a harvesting plans during the milling season.

Under the communal leasehold model, there are 64 cooperatives representing some 5 000 growers and 1 894 of these cooperative members are female growers who have made their land parcels available for sugarcane development.  These women are also actively involved in food security projects in their communities.

In addition, there are 17 communities that are working in collaboration with Tongaat Hulett under the land restitution programme. These restitution projects represent approximately 3 600 beneficiaries, of which more than 35% are women.

It is thus clear that women are an integral part of Tongaat Hulett’s agricultural activities as well as the sugar industry.

The following are some of the women playing important roles within this sector. 

Thobeka Zungu is a 29-year-old who is part of the Nkumbuleni agricultural project, a restitution project under uMkhambathini municipality. Thobeka works as a junior farm manager, responsible for 31 employees and 323 hectares under sugarcane. She has been in this role since 2018. 

Thobeka is responsible for ensuring that planting, harvesting and ratoon management are implemented on the farm. Under her direction, the operation continues to grow, Nkumbuleni trust’s tonnage increased from 19 200 tons in 2019/20 to 22 000 tons in 2020/21 season.

Thobeka believes that women who are members of restitution projects bring skills and different perspectives which help the trust to flouring while managing conflicting views in a progressive manner. 

Nonhlanhla Linda is a 57-year-old female contractor providing agricultural services to growers in communal areas.  Nonhlanhla is the owner of Kwanda Intwenhle Investments and she is operating under the Mandeni Local Municipality and the King Cetshwayo District Municipality. 

Since 2018, Nonhlanhla has provided contracting services to the following cooperatives responsible for 78 hectares combined: KwaDlamu, Asikhulisane, Ultimate Change, Mahlonyane and Dikiza Mlimi.  Through the provision of contracting support, the five cooperatives combined, have been able to create 78 seasonal employment opportunities and provide livelihood to 25 cooperative members.

Nonhlanhla said: “As a woman contractor, I have to work twice as hard to prove my ability and gain trust of the communities I have had the opportunity to service. The number of women operating as contractors or providing a service to farmers remains small. Women find it challenging to own equipment required to run a successful contracting business, due to lack of access to finance.”

Lungile Nkosi is a 37-old administrator at Qwabe Nkanini Communal Property Association which is part of the Ilembe District Municipality. The Association consisting of 189 beneficiaries and has 663 hectares under sugarcane. During the 2020/21 season, the Association delivered 21 300 tons and created 75 seasonal jobs for the local community members.

Lungile said “being a female in a male dominated industry is a challenge because sometimes your skills and capabilities are questioned without reason”.

Nkonzo Mhlongo, Corporate Affairs Executive at Tongaat Hulett, said the agricultural sector is the most important creator of employment for women mainly in rural communities.  Ensuring that women participate meaningfully in farmer organisations, restitution projects and cooperatives will improve food security, promote local economic development and accelerate women participation in leadership positions.

TONGAAT HULETT GIVES BACK AND JOINS ETHEKWINI MUNICIPALITY IN A COMMUNITY CLEAN UP

Tongaat Hulett partnered with the eThekwini municipality, Leitch Landscapes and the Magwaveni community in Tongaat to implement a community clean-up campaign.  The objective of the campaign was to improve the public spaces in and around the Magwaveni community that have been neglected.  The clean-up targeted sidewalks, the area around the taxi rank and areas near the local streams.  The clean-up further focused on the removal of alien plants next to the sidewalks and the residential area.

The day started with all the locals identifying the areas that required the most urgent attention; the grouping of the participants and the distribution of clean up supplies.  The day ended with a report back by the team.   

Tongaat Hulett, eThekwini and Leitch Landscapes restored 3 sidewalks that had been used as dumping sites and also used for illegal activities.  The trash collected including broken glasses, small pieces of furniture, discarded food, tyres, cloth and paper.  Over 200 bags of trash were collected by Leitch Landscape and eThekwini waste management team.

Sikhumbuzo Ntshiza, Tongaat site manager, said that Leitch’s Landscapes had been eager to participate in the campaign as most of their employees were from the Magwaveni community. The employees had always requested the company to invest in this community. Leitch Landscapes therefore hoped that the company’s participation in the clean-up campaign will go a long way in enhancing the quality of life of the community members at Magwaveni.  Living in a clean environment makes life healthier, less stressful and more pleasant.  

Nurse Mthantatho, Education Officer, Cleaning and Solid Waste within eThekwini Municipality said that waste management remains one of the biggest challenges in urban areas including townships and within the informal settlement. The proliferation of waste is attributed to many factors including: lack of recognition of community’s role in waste management; rapid urban growth, lack of environmental education, inadequate bins and irregularities in waste collection by the responsible authorities 

Nkonzo Mhlongo, Corporate Affairs Executive said that Tongaat Hulett had been approached by the municipality and the Magwaveni community to participate in the Magwaveni clean-up campaign. The company recognises that large amounts of trash, garbage and other waste create unsanitary conditions that encourages the development of health problems and diseases. Such environments also makes it difficult for children to find a safe place to play, increasing stress for everyone who lives in it. Cleaning it up provides real and immediate health benefits for the community members as well as helping them think about the possibility of community wellbeing.

Tongaat Hulett also supported Sartech Waste Management and Recycling Incubator. Sartech is a non-governmental organisation that provides training on waste management and recycling. Sartech has working relationships with organisations such as SEDA which provides business management training to budding entreprenuers; DSW which ensures that there is alignment between the broader agenda of eThekwini municipality on issues relating to waste management, transformation, business development and communities; and the local ward Councillors to ensure that the grassroots start-ups are allocated a space to operate.  Tongaat Hulett donated resources to ensure that the local businesses have the relevant resources including collection bags. 

TONGAAT HULETT AND KZN GOVT PARTNERSHIP YIELDS SWEET REWARDS

Five years after being thrown a lifeline by Tongaat Hulett and the KwaZulu-Natal Department of Economic Development, Tourism and Environmental Affairs (EDTEA), 287 small-scale sugarcane growers on the KZN North Coast are reaping the benefits of Operation Sakhinzuzo.

The programme has created much-needed jobs, put food on the table, provided schooling for children and helped the purchase of farming equipment.

The R74 million six-year development programme jointly funded by EDTEA and Tongaat Hulett has seen 3 000 hectares of freehold and communal land come under sugarcane production to bolster economic activity in rural KZN. “

Tongaat Hulett joined EDTEA as a partner to provide both technical and financial support. EDTEA contributed R51,8 million and Tongaat Hulett put in R22,2 million.

Operation Sakhinzuzo has assisted individual small-scale growers, freehold growers and newly-formed cooperatives in rural communities and it has capitalised on economies of scale. Individual growers now own between five and 30 hectares under sugarcane.

Ravi Pillay, KZN MEC for Economic Development, Tourism and Environmental Affairs welcomed the progress, saying Operation Sakhinzuzo was an opportunity to fuel growth and sustainability of sugarcane growers.

“The project has enabled all parties to create 2 470 seasonal jobs; promote education and training of 74 local youth and community members; and has enabled other small businesses associated with the sugar industry to expand and remain sustainable amid the pandemic,” he said.

A secondary objective of the programme has been poverty alleviation and the creation of job opportunities, such as cutting sugarcane, management of harvested fields and transportation of cane to the mill have been created.

The programme has had a positive spin-off on livelihoods in the local community. The health facilities and roads infrastructure have been improved and crime has been reduced in the targeted mill areas.

Nhlanhla Ntuli, Tongaat Hulett Project Leader, said Operation Sakhinzuzo which has helped small-scale businesses to evolve into medium-scale enterprises has provided employment to those living in four Tongaat Hulett milling areas – Maidstone, Darnall, Amatikulu and Felixton.

At the start of each planting season, approved growers are expected to contribute labour; EDTEA supplies fertiliser, lime and chemicals for weed control and Tongaat Hulett pays for the seed cane. Tongaat Hulett also provides training and mentorship support to the cooperative beneficiaries.

“One of the highlights of the programme is that it is very inclusive and encourages small-scale growers to plant seed cane and have it certified. Operation Sakhinzuzo pays the grower for seed cane to be used by the same grower to plant more area under cane, or sell seed cane to fellow growers,” said Ntuli.

The project has successfully created seasonal jobs and paid over R25 million in the form of wages in the targeted mill areas. A total of 169 500 tons of sugarcane has been delivered over the period of five years by the respective growers. The small-scale growers in communal areas delivered 47 percent of the total sugarcane tonnage followed by the freehold growers and the cooperatives at 37 percent and 16 percent respectively. R117 million of revenue has been generated to date by the 287 participating growers.

A further R13 million has been paid to the growers as part of the sugar industry Transformation Intervention programme.

Mkhokhiseni Xaba, a nine-hectare sugarcane grower who is part of Sukumani Cooperative at Makhathini Flats, said that the partnership has yielded positive results for small-scale growers.

“I have been part of Sakhinzuzo for the last three years. I have been able to purchase myself a vehicle through the sugarcane proceeds I have also been able to change the life of my children for the better,” said Xaba.

Marlen Pillay said after the drought in 2015, severe root damage was caused to the sugarcane ratoons, resulting in extremely low yields which made sugarcane farming unfeasible. Operation Sakhinzuzo had helped him to replant most of his crop.

“The assistance with fertiliser and chemicals cut down input costs. I have been able to purchase new machinery and implements. I have also been able to employ more staff permanently,” said Pillay.

Sandile Memela, a member of the youth-dominated Shapely Cooperative which has 40 hectares under sugarcane, said the co-op was awarded a tender to assist other small-scale growers and co-ops with various activities during the planting season.

“The contracting opportunity has increased the co-op members’ knowledge of the various activities associated with sugarcane development, including land preparation, harvesting and ratoon maintenance.

 “Most small-scale growers struggle to secure quality seed cane because it is expensive. Through Operation Sakhinzuzo, all the beneficiaries were assisted to access quality seed cane, and this is important to the growth and sustainability of the project,” said Memela. 

Bulelani Madwe, a local entrepreneur, was contracted to supply fertiliser to the farming community.

“My business has grown exponentially, and I have now opened a store in Jozini through Sakhinzuzo. I would like to thank EDTEA and Tongaat Hulett for giving me such an opportunity. I have grown as an entrepreneur on a number of business aspects including engaging with customers and managing logistics,” Madwe said.