Tongaat bidder appears in court over alleged fraudulent funding letter
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Aquil Rajahussen, the director of Mozambican-based RGS Group, appeared in the Randburg Magistrate’s Court on Tuesday on fraud charges linked to the Tongaat Hulett business rescue bidding process. The case was postponed to 10 June, when Rajahussen is expected to respond to allegations that RGS fraudulently submitted a R2 billion proof-of-funding bank letter as part of its bid for the embattled sugar producer. RGS submitted an R8bn bid for Tongaat Hulett in 2023 during the company’s business rescue process, competing against Vision Sugar, which later emerged as the preferred bidder. Ian Small-Smith, a lawyer for complainant Vision Sugar, told the Mail & Guardian that RGS had committed fraud against the lender group of banks by allegedly supplying a false funding letter to creditors. “We take comfort in the fact that law enforcement is taking this matter seriously and have confidence that the truth will come out in court,” Small-Smith said. Rajahussen presented himself to the Hawks in Pretoria on Monday. He was charged and fingerprinted before his first court appearance on Tuesday. The National Prosecuting Authority has enrolled the matter for prosecution. Rajahussen and RGS appear as co-accused. RGS and Rajahussen have denied wrongdoing, describing the allegations as an attempt to damage the company’s reputation and derail its bid. The company has also accused Tongaat’s business rescue practitioners of favouring the Vision consortium while unfairly disregarding RGS’s proposal. In April, the Durban High Court granted temporary relief to Tongaat’s business rescue practitioners to allow them time to develop a rescue plan. This after a last-minute assurance by the Industrial Development Corporation to extend its post-commencement finance facility until at least the end of June. Tongaat entered voluntary business rescue in November 2022 after losing 95% of its value in a R3.5bn accounting scandal. Former chief executive Peter Staude, along with former managers and accounta