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.

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Sun May 26 09:38:16 SAST 2013 ::

Jul 13, 2012

Mrazane

Cry the beloved country. If Senyati is owned by one of our ministers or relatives then good riddance you deserve to go down. If not then Zuma and your government you should be ashamed for killing a business and causing people to lose their jobs. Actually now that I think of it chances are this is an honest business that is going down cos if it had links to someone in government they would be paid not only in time but before time. They are probably not paid cos they refused to give some undeserving corrupt official a cut.
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