Bosasa, currently trading as African Global Operations, has confirmed that the company is under voluntary liquidation after two banks took a decision to close down the company’s banking facilities amid corruption allegations.
The company confirms that the move will not affect its ongoing operations.
Investigative journalist at News24, Kyle Cowen says it's too early to say whether this is the end of Bosasa but draws parallels to the Gupta scenario.
Voluntary liquidation at this stage does sound scary, sounds like 4500 people are about to lose their jobs but there are ways in and out of these things.— Kyle Cowen, Investigative journalist - News24
What I think would happen, because Bosasa has established such a lucrative clients base, I think the companies might not be broken down and sold out chair-for-chair. But they might split up and certain parts of the company be sold to other individuals who will them take up management of those contracts.— Kyle Cowen, Investigative journalist - News24
This is so similar to the Guptas is quite scary.— Kyle Cowen, Investigative journalist - News24
Although the situation is quite similar, Cowen argues that there won't be any government involvement as happened with the Guptas because the state capture commission has put government's corrupt dealings under the spotlight.
It's board is unlikely to rely on its government connections to bail it out, he says.
According to a statement issued by Bosasa, 4500 employees stand to lose their jobs because of the bank's decision.
The company is unfairly blaming the banks when it is the entity involved in corrupt dealings, he adds.
What they are not saying in their statement is that it was the result of our actions, criminal acts that we undertook, as the people who were supposed to look after the welfare of our employees first and foremost.— Kyle Cowen, Investigative journalist - News24
Don't blame the media and don't blame the banks but blame the people who committed the crimes.— Kyle Cowen, Investigative journalist - News24
To hear the rest of the conversation, listen below: