A mining contractor in South Africa owned by the Indian origin Gupta family has been put into liquidation, said a media report quoting the people with the knowledge of the issue.
Westdawn Investments, which is running the business as JIC Mining Services (Pty) Ltd has taken loans almost $1.2 million and the firm received a liquidation communication on Friday (2) from a liquidator sent by the high court. Kal Tire Mining, which JIC owes £48236 brought the application, quoted the people with the knowledge as saying by Bloomberg.
As many as 800 staff members are expected to lose their jobs and chief executive officer Jagannath Arora is very likely to leave South Africa to return to India following the new development.
Last year, JLC completed work on the Maseve concentrator plant, which was owned by Platinum Group Metals Ltd at that time. The precious metal producing firm paid all bills for the services provided. However, JIC’s suppliers and debtors haven’t been reimbursed by JIC.
JIC’s parent firm, Oakbay Investments, is also setting up new offices and will trade as MJ Mining, according to the people with the knowledge.
Some members of the Gupta family, who had close relations with the former South African president Jacob Zuma resigned from their positions in the firms they control. The move of the Gupta family members attracted the controversy with allegations of influence over certain politicians and the deals.
The Gupta family’s name started floating in South Africa in and after 2013 after an allegation that the Indian origin business family misused its political connection to land an aircraft with wedding guests from India at a high-security defense based near Johannesburg.
The investigations later found that the business family misused its links with Zuma to obtain contracts and agreements from state firms including coal supply deals with Eskom Holdings SOC Ltd.