Sanjeev Gupta can afford a new $12.5m apartment, yet can’t pay bills on time, Eddie Hughes says
Whyalla MP Eddie Hughes has slammed GFG Alliance boss Sanjeev Gupta for shelling out $12.5m for a harbourside Sydney apartment while not paying contractors on time.
South Australian MP Eddie Hughes has slammed GFG Alliance boss Sanjeev Gupta for shelling out $12.5m to buy a harbourside Sydney apartment from radio identity John Laws, while reportedly not paying contractors for the Whyalla steelworks on time.
The new purchase, confirmed by a search of title records by The Australian, adds to the $34m, eight bedroom, five bathroom Potts Point mansion Bomera, which overlooks Sydney Harbour, and a £42m mansion in London’s exclusive Belgravia, purchased in 2020, owned by Mr Gupta.
GFG’s Whyalla steelworks has been struggling this year, with the blast furnace going cold in March during routine maintenance, and its restart delayed following damage to its shell during efforts to get hot steel flowing again.
The company sacked 50 white collar workers in August, while contractors have been complaining anonymously of being paid late.
Mr Hughes, the Labor Member for Giles, took to social media on Tuesday to vent after news of Mr Gupta’s purchase of a luxury apartment at Woolloomooloo, to add to his portfolio.
“Contractors, casuals and labour hire companies continue to suffer due to continuing uncertainty at GFG’s Whyalla Steelworks, as do workers at the plant who are understandably concerned,’’ Mr Hughes said.
“Sometimes it just takes one more straw on the camel’s back to unleash the pent-up frustration and anger.
“The latest high-end Gupta property acquisition in Sydney might well prove to be that straw. “An acquisition that comes on top of other high-end property purchases — at a time when my community is going through real pain and uncertainty.
“While he can find $10m-plus for an apartment on Sydney Harbour, contractors have to wait for his company to pay its bills.
“And while his company extracts hundreds of millions through the export of iron ore, still we wait for required preventative maintenance at the ageing steel works and for a firm and tangible commitment to the technology transition.’’
Comments on Mr Hughes’s Facebook page indicate how far the tide has turned against Mr Gupta, who was hailed as a saviour when he bought the steelworks out of administration in 2017.
He made promises running into the billions about steelworks upgrades and renewable energy projects in the years following his company’s purchase of the steelworks and iron ore mines, however, none of these have come to pass.
“Enough is enough he is not a saviour of this town he is the ruination of it,’’ one commenter said.
“When Gupta bought the Whyalla Steel works I had high regard for him,’’ another said.
“He has been a total disappointment. The Whyalla people don’t deserve the hardship that he has inflicted on them.’’
Sources told The Australian last month some contractors had been forced to threaten to withhold services before being paid, with the situation worsening over the past six months.
A GFG spokesperson did not address Mr Hughes’ criticisms but said in a statement: “The steel industry is a facing a prolonged slump which is affecting all steel companies around the world’’.
“To manage through the market downturn we are reducing fixed costs including maintenance to calibrate with lower market demand,’’ the said.
“We are prioritising areas that are safety critical and essential for production.
“Safety remains our number one priority. While we can never take safety for granted, we have an excellent safety record across our Australian operations including in Whyalla where we have significantly improved safety since acquiring the business.
“GFG has invested over A$1bn in Whyalla’s operations since 2017 and remains committed to its green iron and steel investment plans.”
GFG says it is still planning to build an electric arc furnace and integrated direct reduced iron plant at Whyalla, at a cost previously estimated at $500m.
The company in May pushed the timeline for the project back from 2025 to 2027, citing the complexity of delivering both projects at once — infuriating the state government, which had been left out of the loop.
GFG has been contacted for comment.
EDDIE HUGHES’ COMMENTS IN FULL
Contractors, casuals and labour hire companies continue to suffer due to continuing uncertainty at GFG’s Whyalla Steelworks, as do workers at the plant who are understandably concerned.
I have no doubt about the State Labor Government’s commitment to the future of Whyalla and the need to ensure the link between mining and iron/steel production. Our other positive initiatives including the hydrogen power plant, green iron and steel expression of interest process, Northern Water proposal and leveraging the copper expansion cannot dispel the immediate and ongoing concerns of locals around Gupta’s holdings in Whyalla.
Sometimes it just takes one more straw on the camel’s back to unleash the pent-up frustration and anger. The latest high-end Gupta property acquisition in Sydney might well prove to be that straw. An acquisition that comes on top of other high-end property purchases – at a time when my community is going through real pain and uncertainty.
While he can find $10 million-plus for an apartment on Sydney Harbour, contractors have to wait for his company to pay its bills. And while his company extracts hundreds of millions through the export of iron ore, still we wait for required preventative maintenance at the ageing steel works and for a firm and tangible commitment to the technology transition.