African Global announces voluntary liquidation after bank closes account
In a statement, African Global Operations, which was formerly known as Bosasa, has confirmed that it has been informed by banks that all its accounts will be closed before the end of the month.
JOHANNESBURG - Bosasa has confirmed that it has filed for voluntary liquidation amid corruption allegations.
Banks that do business with the company now known as African Global Operations have sent notifications to the board of directors informing them that they will cut ties with the organisation.
Bosasa has been identified as one of the main players in state capture following testimony by former executives at the Zondo commission.
In a statement, Bosasa has confirmed that it has been informed by banks that all its accounts will be closed before the end of the month.
This comes after the company suffered extensive reputational damage in the past few months following revelations of corruption at the Zondo commission.
The board of directors also takes a swipe at journalists, blaming negative media reports for the reputational damage it suffered.
Bosasa claims that the decision of the banks to cut ties with the company is not based on its liquidity status, financial stability, operational performance or growth forecasts.
It says that it won't be able to trade without a bank account or pay creditors.
Over 4,500 employees will be affected by the liquidation.