{"id":95235,"date":"2025-02-19T10:52:24","date_gmt":"2025-02-19T08:52:24","guid":{"rendered":"https:\/\/radioislam.org.za\/a\/?p=95235"},"modified":"2025-02-19T12:25:16","modified_gmt":"2025-02-19T10:25:16","slug":"al-mabroor-investments-understanding-the-financial-crisis-and-business-rescue-process","status":"publish","type":"post","link":"https:\/\/radioislam.org.za\/a\/al-mabroor-investments-understanding-the-financial-crisis-and-business-rescue-process\/","title":{"rendered":"AL MABROOR INVESTMENTS: UNDERSTANDING THE FINANCIAL CRISIS AND BUSINESS RESCUE PROCESS"},"content":{"rendered":"

Annisa Essack | kzn@radioislam.org.za
\n19 February 2025 | 10:30 CAT<\/strong><\/span>
\n3 min read
\n<\/strong><\/span><\/p>\n

FULL INTERVIEW – CLICK HERE<\/a><\/strong><\/span><\/p>\n

\"\"Al Mabroor Investments (PTY) Ltd, a major player in agricultural and diversified investment projects, is facing financial distress. Many investors are frustrated by delayed payouts and declining profits. Amid mounting concerns, the company has now been placed under business rescue, raising fresh questions about its future. Al Mabroor Investments\u2019 financial difficulties, non-executive director Yaseen Badat joined Mawlana Sulaiman Ravat on Sabahul Muslim to address investor concerns, the business rescue process, and the company’s future.<\/span><\/p>\n

Investor Concerns and Payment Delays<\/strong><\/span><\/h2>\n

Many investors have reported:<\/span><\/p>\n

    \n
  • There are long delays in withdrawal requests, with some waiting over a year.<\/span><\/li>\n
  • Unpaid declared profits despite previous assurances.<\/span><\/li>\n
  • A drop in profit margins raised fears about the company\u2019s financial stability.<\/span><\/li>\n<\/ul>\n

    Badat explained that the livestock investment division was hit by a \u201cperfect storm\u201d of financial difficulties. These included:<\/span><\/p>\n

      \n
    • A downturn in the agriculture sector affects overall profitability.<\/span><\/li>\n
    • An investor panicked, and\u00a0numerous investors sought withdrawals at the same time.<\/span><\/li>\n
    • Liquidity and cash flow issues, as new investments were not coming in fast enough to offset withdrawals.<\/span><\/li>\n<\/ul>\n

      The company attempted to sell assets to manage this crisis, but market conditions made securing buyers at favourable prices difficult.<\/span><\/p>\n

      Understanding the Business Structure<\/strong><\/span><\/h2>\n

      Al Mabroor Investments operates under different investment pillars, including:<\/span><\/p>\n

        \n
      • Agri Fund (livestock investments).<\/span><\/li>\n
      • Student Housing Fund (properties in Gauteng).<\/span><\/li>\n
      • Hospital Fund (linked to the Road Accident Fund).<\/span><\/li>\n
      • Vehicle Finance Project.<\/span><\/li>\n<\/ul>\n

        While the Agri Fund has faced the most significant challenges, some issues have also emerged in other investment divisions. However, each division operates independently.<\/span><\/p>\n

        Business Rescue: What It Means for Investors<\/strong><\/span><\/h2>\n

        Due to growing financial concerns, a group of investors filed for business rescue, which\u00a0the court\u00a0approved<\/span>.<\/span><\/p>\n

        What Changes Under Business Rescue?<\/strong><\/span><\/h3>\n
          \n
        • Court-appointed business rescue practitioners (BRPs)\u00a0will now oversee the company.<\/span><\/li>\n
        • The board and management team must take instructions from the BRPs.<\/span><\/li>\n
        • The primary goal is to stabilise operations and restructure finances.<\/span><\/li>\n<\/ul>\n

          However, this process raises new challenges:<\/span><\/p>\n

            \n
          • Extended payout timelines\u2014investors may have to wait months or even years.<\/span><\/li>\n
          • High costs\u2014BRPs typically charge R1,700\u2013R2,000 per hour, which investors must cover.<\/span><\/li>\n
          • Investor uncertainty\u2014the outcome depends on asset sales and recovery plans.<\/span><\/li>\n<\/ul>\n

            Fraud Allegations: Was Mismanagement Involved?<\/strong><\/span><\/h2>\n

            Badat confirmed that\u00a0there is no evidence of fraud or theft based on all available\u00a0board reports and oversight reviews<\/span>. However, he acknowledged that:<\/span><\/p>\n

              \n
            • Poor communication and strategic missteps may have worsened the situation.<\/span><\/li>\n
            • Diversification into multiple sectors may have overextended resources.<\/span><\/li>\n
            • Some investor concerns were not addressed early enough, leading to panic.<\/span><\/li>\n<\/ul>\n

              Will Investors Get Their Money Back?<\/strong><\/span><\/h2>\n

              The business rescue practitioners will determine the next steps, including:<\/span><\/p>\n

                \n
              • Selling assets to repay investors\u2014but quick sales may result in losses.<\/span><\/li>\n
              • Restructuring the company\u2014some investors may be able to stay invested in new projects.<\/span><\/li>\n<\/ul>\n

                Key Takeaways For Investors<\/strong><\/span><\/h2>\n
                  \n
                • Immediate withdrawals may not be possible.<\/span><\/li>\n
                • Market conditions will determine whether full capital returns are achievable.<\/span><\/li>\n
                • Patience may lead to better recovery, while urgent withdrawals could mean losses.<\/span><\/li>\n<\/ul>\n

                  Concerns Over Management and Salaries<\/strong><\/span><\/h2>\n

                  Many investors questioned whether management continues to earn salaries while they face losses. Badat clarified that:<\/span><\/p>\n

                    \n
                  • Non-executive board members receive no salaries.<\/span><\/li>\n
                  • Executive board members only earn when the business is profitable.<\/span><\/li>\n
                  • Operational costs (staff salaries, administration) are paid from their funds, not investor money.<\/span><\/li>\n<\/ul>\n

                    Next Steps for Investors<\/strong><\/span><\/h2>\n
                      \n
                    • The business rescue practitioners will present a formal recovery plan in the coming weeks.<\/span><\/li>\n
                    • Investors should stay informed and engage with the BRPs.<\/span><\/li>\n
                    • The success of asset sales and the willingness of investors to remain patient will impact the final outcome.<\/span><\/li>\n<\/ul>\n

                      Final Thoughts<\/strong><\/span><\/h2>\n

                      The future of Al Mabroor remains uncertain, but the company is now in a critical restructuring phase. Investors are urged to remain patient, seek clarity, and avoid panic-driven decisions as the process unfolds.<\/span><\/p>\n

                       <\/p>\n

                      \u00a0<\/strong><\/span><\/p>\n

                       <\/p>\n","protected":false},"excerpt":{"rendered":"

                      Annisa Essack | kzn@radioislam.org.za 19 February 2025 | 10:30 CAT 3 min read FULL INTERVIEW – CLICK HERE Al Mabroor Investments (PTY) Ltd, a major player in agricultural and diversified investment projects, is facing financial distress. Many investors are frustrated by delayed payouts and declining profits. Amid mounting concerns, the company has now been placed […]<\/p>\n","protected":false},"author":32,"featured_media":95236,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[29,31],"tags":[],"class_list":["post-95235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-community-news","category-podcasts"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/radioislam.org.za\/a\/wp-content\/uploads\/2025\/02\/download.jpeg?fit=316%2C160&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/pc0QIf-oM3","jetpack_likes_enabled":true,"publishpress_future_action":{"enabled":false,"date":"2026-04-15 04:01:56","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts\/95235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/comments?post=95235"}],"version-history":[{"count":0,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts\/95235\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/media\/95236"}],"wp:attachment":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/media?parent=95235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/categories?post=95235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/tags?post=95235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}