BOSASA Closes Down

BOSASA Closes Down


On Monday 18 February 2019, Bosasa announced
that it has gone into voluntary liquidation, following the closure of its bank accounts
by its financial institution. Bosasa, which is now known as African Global
Operations, found itself embroiled in allegations of state capture, when its former Chief Operations
Officer, Angelo Agrizzi, appeared before the Zondo commission, and testified about corruption,
and bribes relating to the company’s contracts with the government. Agrizzi was the right-hand man of Bosasa CEO,
Gavin Watson. Agrizzi told the commission, that every government
contract with Bosasa was marred by bribery and corruption. He also told the commission, how officials
from the Department Of Correctional Services, the National Prosecuting Authority, ministers,
and former president Jacob Zuma, were allegedly paid bribes by Bosasa. The company indicated, that it had received
formal notification from its financial institution, of the decision to distance itself from the
company, and that it would close its bank accounts by the end of February 2019. To avert a situation, whereby the company
would not be able to further operate from 01 March 2019, the company board applied with
various financial institutions, locally and internationally, for a trading account. The extensive reputational damage in the past
few months, occasioned by negative media reports, has resulted in financial institutions’
determination, that the company poses a reputational risk. Since Angelo Agrizzi’s testimony, there
have been arrests in relation to Bosasa’s contracts with the Department Of Correctional
Services. Former correctional services commissioner,
Linda Mti, former correctional services CFO, Patrick Gillingham, Agrizzi himself, and former
Bosasa CFO, Andries van Tonder, have already appeared in court, on charges of money laundering
and corruption. Together with Frans Vorster, and Carlos Bonifacio,
who were charged separately in another Bosasa-related matter, they were all released on 20,000 rand
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