Outa concerned about jobs after Gupta companies apply for business rescue

Two business rescue practitioners have been appointed to oversee several companies and have outlined plans for the assets of the firms involved.

A screengrab of employees at the Gupta-owned Optimum Mine in Mpumalanga downing tools over salaries on 21 February 2018.

JOHANNESBURG - Civil rights group the Organisation Undoing Tax Abuse (Outa) says its concerned about job security for thousands of people working at Gupta-linked companies that have now applied for business rescue.

Two business rescue practitioners have been appointed to oversee several companies and have outlined plans for the assets of the firms involved.

They include Tegeta Resources, Optimum Coal Mine and Shiva Uranium.

Outa's Ben Theron says these mines are crucial for providing coal to two Eskom power stations.

“Two business rescue practitioners have been appointed. The problem is that they are hired companies which means if you only have two BRP [business rescue practitioners] they’re going to have their hands full. Remember this is not the normal factory, this is the South African energy sector, if you take three names out, it directly impacts on the state’s stability of the grid.”