Sanyati is to be liquidated
AN ENGINEERING firm owed R60-million by the Free State provincial government is to be liquidated.
A business rescue had been attempted for Sanyati, one of the government's major private partners, but the appointed rescue practitioner Trevor Murgatroyd on Tuesday recommended the company's liquidation.
Murgatroyd made the proposal after Sanyati's rescue plan collapsed. Sanyati was not sustainable without a substantial capital injection.
The company's bank cancelled Sanyati's overdraft facilities and froze its accounts, effectively strangling the business, Murgatroyd said.
Free State government spokesman Wisani Ngobeni said the roads department had faced "resource challenges" and regretted the liquidation.
He said Sanyati employees were likely to lose their jobs.
President Jacob Zuma said last Friday the government would take drastic measures to ensure service providers were paid within a month.
Presidency spokesman Harold Maloka said a national intervention team led by the Treasury was looking into the problems facing the Free State roads department.