“It is with deep regret that the board of directors announces the closure of the African Global Operations group of companies,” the company said in a statement signed by Director Johannes Gumede.
“We received formal notification from our financial institution of the decision to distance itself from the group and as a result, the closure of all the entities bank accounts on or before 28 February 2019.”
Bosasa has been strongly implicated in corruption during the Zondo Commission of inquiry into allegations of state capture, with its former COO Angelo Agrizzi and other employees testifying about its payment of bribes.
Agrizzi detailed how Bosasa co-founder and CEO Gavin Watson allegedly paid cash bribes to multitudes of government officials and politicians in order to curry favour for his company to win lucrative tenders in government.
Bosasa said the extent of reputational damage caused by these allegations had resulted in other local and international banks declining to open a trading account for the company.
“The decisions made by the financial institutions are not based on African Global group’s liquidity status, financial stability, operational performance or growth forecasts,” it said.
“On the contrary, the group is both factually and commercially solvent. Tragically, the group will be unable to trade without a bank account.”
Bosasa, which employs more than 4 500 workers, said it was advised that in the event that it may not be able to pay its creditors within six months, it has an obligation to enter into business rescue or voluntary liquidation, as per the Companies Act.
– African News Agency