Gupta’s Companies Seeks Business Rescue just days after Zuma resigned!
This week we have seen the price of the fall of President Jacob Zuma, the cleaning of the State Owned Enterprises has hopefully started. That can be said because of the actions of the Gupta Family owned corporations as so many of them has suddenly applied for “Business Rescue”, you can wonder what that means, therefore, I went to law-firm who can explain what the Business Rescue means.
Werkmans Attorneys said this: “The aim of business rescue is to restructure the affairs of a company in such a way that either maximises the likelihood of the company continuing in existence on a solvent basis or results in a better return for the creditors of the company than would ordinarily result from the liquidation of the company (section 128(1)(b)(iii))”. So the initial idea behind it is to make adjustments to either secure the companies or secure the creditors, when coming from Gupta businesses meaning the changes of government contracts and litigation’s following the change of President.
Sudden Optimum Coal Terminal Limited, Optimum Coal Mine Limited, Tegeta Exploration and Resource Limited, VR Laser Service Limited, Koornfontein Mines Limited, Confident Concept Limited, Shiva Uranium Limited and Islandsite Investment One Hundred Eighty Limited. We should anticipate in the coming days and weeks, that Oakbay Investment and Oakbay Resources will run insolvent too. As these companies has dried the funds of Eskom and other state owned businesses with shady deals made under the Zuma administration.
We can just imagine the state suffering from this, as the Business Rescue tools buys the companies and investors time, while they have already moved away the funds and needs new liquidation to save it. Smart move by the foreign investors, who used their relationship with Zuma to bleed the nations out of money. They started the companies in the years before Zuma took power in 2006 and 2007. The Shiva Uranium is the oldest company, but the others are very new and made for the age of Zuma.
This will hurt many of the current leaders within African National Congress (ANC) who has also been regarded and parts of the deals, this being Molefe and Gigaba. Des Royeen should also struggling at night and wonder why he was part of it. That ANN7 and Transnet should also worry, all things connected with the Gupta’s should be shaking, Sahara Computers and what else of companies they deliberately made to gain fortunes and spin their stories. It should be hurt and within time, they will ask for rescue too. As the funds and contracts with the state stops.
We can just wonder how many more Estina deals there been in the different states of South Africa. As long as the creditors, the banks and the HAWKS continue to pursuit the lost cash. Now that the Zuma cannot stop their investigations, hopefully more whistle-blowers and more covers will be showed in public. So that the State can get their funds back and also prosecute the ones who has stolen money from the public.
All of this will hit hard towards the finances of South Africa, the service delivery of the state owned corporations, as they was dealing with them directly to secure coal or other services. We can just wonder, how the effect will be in the long run. How the ANC will manage and who has to go because of it. Who will be implicated and who has to answer for the shady deals done in secret so the Indian businessmen could earn fortunes on rigged arrangements. Peace.