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Bosasa to cease trading as banks close accounts

The banks say the firm poses a ‘reputational risk’ for them as clients.

South African services firm Bosasa, which is known as African Global Operations, said on Monday it had applied for voluntary liquidation after its banks told it they would close its accounts by the end of the month, citing reputational risk.

Privately-owned Bosasa said in a statement it had suffered “extensive reputational damage” over the past few months, during which time it featured in a South African judicial inquiry into alleged influence peddling.

Its former chief operating officer alleged during the inquiry that he bribed politicians and bureaucrats to secure contracts for Bosasa and was subsequently arrested alongside five others.

Bosasa is the latest firm to be wound up as South Africa tries to deal with years of widespread government corruption and alleged influence peddling, including via investigations and inquiries.

Companies linked to the Gupta brothers, the heads of one of the country’s biggest conglomerates, have had their bank accounts withdrawn and collapsed as part of a far-reaching scandal that also dragged down PR firm Bell Pottinger and engulfed global firms like KPMG and consultancy Bain.

“The group will be unable to trade without a bank account,” it said, adding there would be a “devastating ripple affect” on 4 500 employees and 3 100 firms in its supply chain.

Absa, FirstRand and Nedbank said they could not comment, citing client confidentiality. 

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“The banks say the firm poses a ‘reputational risk’ for them as clients.” Which basically means, ‘We’ve known all along that you are completely corrupt to the core but now that everyone else does as well, we’re out.’
Nothing to see here.

But we have seen this play out before, do you remember the Gupta family? I wonder if Bosasa had a VBS account?

So it was fine while it was under the covers, now you running scared.

Maybe the banks should have said long ago we don’t like your business model please go some where else. While the money was good……..

That is how honest South African citizens, leaders and businesses do business.

I have suspected for a while now that the South African public boycotts corrupt businesses in general, look at Eskom and SAA as an example.

Never underestimate South Africans.

“Privately-owned Bosasa said in a statement it had suffered “extensive reputational damage” over the past few months,..”

Understatement of the year….

I suspect the ANC will make Bosasa split into 3 Companies. This way it becomes 3 times more difficult to catch the th1eves and 3 times harder to unravel the sh1t when they hide it.

I am pretty sure you are correct. What will they call the new CEO’s? The three stooges or the three musketeers.

It’s the anc and bossasa’s version of the ménage à troi?

I bet that’s going to be Watto’s defence. “We’re just a bunch a nice guys doing a great job until a disgruntled and vindictive former employee said those things about us.

So when are all these ethical banks going to close down all their ANC and EFF accounts because of the ALREADY KNOWN “reputational risk” of having these scumbags as clients???

When will the banks close and freeze the implicated government officials bank accounts?

The money is surely proceeds of crime….

In that breath why is the EFF accounts still open who have admitted to receiving funds from organized crime?

Interesting that the only people in the dwang are the whistle blowers themselves. None of their corruptees are. Makes one wonder.

“Spare me a dime before you leave, Roy”!

Apol. Roy Rogers.

The icing on the cake would be to find out that Bosasa’s auditors is KPMG.

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