Premier Peter Malinauskas warns it’s time for GFG to pay bills as Sanjeev Gupta stays silent

Embattled billionaire Sanjeev Gupta has remained silent amid grave fears over GFG Alliance’s finances.

• Gupta’s $10m mansion makeover
• How Sanjeev Gupta made his millions

Embattled billionaire Sanjeev Gupta must come clean to South Australians and reveal whether he can repay debts and invest in his Whyalla plant rather than upgrade mansions, the premier warns.

The British industrialist tycoon, who is believed to be in the Middle East, has gone to ground as he ignores questions on his global empire, GFG Alliance, amid grave fears over its financial woes.

Premier Peter Malinauskas last week revealed state taxpayers are owed “tens of millions of dollars” in royalties with GFG at least six months in arrears.

Company subsidiary Liberty Primary Metals Australia, which operates the Whyalla steelworks, owes contractors similar amounts. State law bans officials disclosing the precise royalties figure owed.

Premier Peter Malinauskas last week revealed state taxpayers are owed “tens of millions of dollars” in royalties with GFG at least six months in arrears. Picture: Ben Clark

Senior government sources say “angry” state and federal governments are “fast running out of patience”.

In a statement to The Advertiser, Mr Malinauskas said he was “very unhappy” businesses were unpaid as he issued a new warning that “it’s time” for GFG transparency – comments echoed by Energy and Mining Minister Tom Koutsantonis.

In his first public intervention on the mounting crisis, federal Industry Minister Ed Husic also told the GFG chairman to “pay your bills”. Mr Gupta, who has remained silent on the saga all week, was asked for an interview.

Creditors in limbo

Another contractor has told of his money frustrations as Whyalla workers fret over their future while Mr Gupta, 53, lives the high life.

Small business owner Roger Jordan, who owns Whyalla-based satellite communication business SkyVision, said he was a “small player” owed a “few thousand dollars”.

Mr Jordan, a Whyalla local, said his business he founded in April 2011 was floundering and has shrunk from three workers to just himself.

“My business is going very badly at the moment, my turnover’s declined massively. My offsider is getting a few hours work a week, but that’s hardly enough to base a living on,” Mr Jordan said.

Whyalla local Roger Jordan said his business was “going very badly at the moment” as the town deals with the looming uncertainty. Picture: Dean Martin

Town on edge

For Mr Jordan, 61, Mr Gupta’s optics were insulting to a town in a “death roll” as its contractors and businesses suffered deep financial pain.

“It’s certainly a bad look that we don’t have much confidence of being paid,” he said.

“You can’t have it both ways. It adds salt to the wounds when you see the lavish lifestyle.”

He said the Iron Triangle city was “hurting” as locals “lashed out” amid a faltering housing market.

“I’m hearing more and more the business community coming to terms with the fact they are going to lose a great deal of money, which is quite sad,” he said.

He warned “some tough calls have to be made” to solve “this shemozzle”.

Mr Malinauskas said his government “has been preparing for months for a range of scenarios”.

“We stand ready to back in the people of Whyalla and the future of steel making in this country,” he said.

The British industrialist tycoon, who is believed to be in the Middle East, has gone to ground amid grave fears over GFG Alliance’s financial woes. Picture: AAP Image/David Mariuz

Missing in action

Mr Gupta, who is believed to be in Dubai, won a battle in December to upgrade his $34m Sydney harbourside mansion as debts mounted.

Mr Gupta’s silence – he last spoke publicly more than a month ago – has fuelled fears his empire is teetering on the brink amid a backlash over its financial decisions.

There was no sign of Mr Gupta at his “Bomera” mansion in Potts Point on Sunday.

An unnamed occupant could not say when he would return to his mansion, which will undergo a $10m upgrade with a covered pool, sauna, spa, yoga room, cinema and whisky room.

On January 6, Mr Gupta praised “herculean” efforts after the plant produced its first steel in four months: “We’ll not rest until we bring the business back to black.”

Political pressure

The Premier and Mr Koutsantonis called for action while also expressed federal anger over Mr Gupta’s decisions.

”I’m very happy GFG’s hardworking employees have got the blast furnace up and running,” Mr Malinauskas said yesterday.

“But I’m very unhappy that some businesses aren’t getting paid for the work they’ve done to help make that happen.

“There’s nothing wrong with enjoying your success, but it better not be at the expense of unpaid creditors. It’s time for Mr Gupta to not only demonstrate his ability to pay his creditors, but also invest in the steelworks future.”

Mr Koutsantonis said: “We understand the people and workers of Whyalla are angry. I get it and I share that anger.

“No more grand gestures, no more ambit pledges – it’s time to pay up to your contractors and spend up on the green iron and steel transition we’ve been promised for almost a decade.”

Mr Husic called on Mr Gupta to “pay your bills, invest in the steelworks (and) level with Whyalla”.

“Don’t keep workers and contractors in the dark,” he said.

“The people of Whyalla deserve that – Australian steelmaking deserves it too.”