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Beleaguered Bosasa liquidates after banks close its accounts

Feb 18, 2019
Beleaguered Bosasa liquidates after banks close its accounts

Bosasa, which has been at the centre of a massive bribery and corruption scandal, following revelations at the Zondo Commission of Inquiry into State Capture, on Monday announced that it was going into voluntary liquidation after banks closed its accounts.

The allegations were made by former Bosasa COO, Angelo Agrizzi, when he appeared before the Zondo commission. He was Bosasa CEO, Gavin Watson's right-hand man.

Agrizzi alleged that the company, now known as African Global Operations, paid millions of Rands worth of bribes every month in order to secure tenders from government.

He implicated officials from the Department of Correctional Services and the National Prosecuting Authority (NPA), ministers and even former president, Jacob Zuma, in the Bosasa bribery and corruption scandal.

Bosasa notified by banks of accounts closure

On Monday, Bosasa announced that it had been notified by its bank that it was closing its bank accounts by the end of February.

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

“The extensive reputational damage in the past few months, occasioned by negative media reports, has resulted in financial institutions’ determination that the African Global group poses a reputational risk for them as client.”

African Global Operations said the decisions made by the banks was not based on the company's liquidity status, financial stability, operational performance or growth forecast. However, the company will not be able to do business without bank accounts.

Since Agrizzi’s testimony, several people including former correctional services commissioner, Linda Mti; former correctional services CFO, Patrick Gillingham, Agrizzi himself, and former Bosasa CFO, Andries van Tonder, were arrested and appeared in court on charges of money laundering and corruption.

They are currently out on bail.

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