Bosasa to file for liquidation

In a statement, the corruption-tainted company confirmed that both FNB and Absa have notified it of an intention to close the company’s bank accounts by the end of the month. 

Bosasa has been fingered in large-scale corruption at the commission of inquiry into state capture. 

"We received formal notification from our financial institutions of the decision to distance itself from the group, as a result, the closure of all the entities bank accounts on or before 28 February 2019.

"To avert the situation whereby the group would not be able to operate as of 1st of March 2019, African Global group board applied with various financial institutions, locally and internationally for a trading account,” the company said in the statement.

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It warned that development could lead to massive job losses.

African Global employs over 4000 people.

"This will result in 2 500 people being impacted by the possible loss of employment, the potential termination of 108 unemployed black youth that are currently on learnerships and internships, who through this initiative, are receiving a monthly stipend whilst gaining valuable workplace experience.”

The company says there will also be a ripple effect on suppliers and contractors.

"The group has in excess of 3100 suppliers, many of whom are small business dependent on the work received from the group.”

 The Organisation Undoing Tax Abuse (Outa), says while the liquidation is obviously not good news for the African Global Group, the banks should be commended. 

"Its nice that we can see some consistency with the banks and taking these companies that act in a corrupt manner and a manner that fosters and festers the problem of corruption in this country , to bring them to a grounding halt so this is going to be very interesting and we look forward to more actions taken by the banks against other companies that have been playing  in a similar manner as they become exposed, " Outa Wayne Duvenage said.

UDM leader Bantu Holomisa believes African Global should not be allowed to go into voluntary liquidation, while the commission of inquiry into state capture is ongoing.

Holomisa wants the inquiry to issue an interim report dealing with African Global's assets.

"This voluntary liquidation of Bosasa company by their bosses must be looked at seriously, there are signs that they are trying to hide their assets and by the time this inquiry is finished we will just be casing an empty cell.

"Also, we have to expect from the same commission that in their interim report they should indicate what will happen to their assets and the money they have stolen.”

Holomisa questioned the timing of the closure of the company’s accounts. 

"Also the banks themselves, why now? They have known about these shenanigans almost for the last nine years and they kept quiet.”