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The decision by the banks to close the Bosasa accounts is a welcome development in the fight against corruption.

It was reported today that at least two banks have given notice to Bosasa, now known as African Global Operations, that its accounts will be closed by the end of the month due to reputational risk. This follows weeks of evidence at the State Capture Commission on corrupt business practices.

We believe this is in line with actions taken against the Gupta business accounts in 2017 and sends a message of consistency on banking institution responsibilities against companies which are involved in money laundering and corruption.

“Obviously, the closure of the accounts will have serious ramifications for the African Global Operations group, its staff and contractors,” says Heinrich Volmink, OUTA’s Executive Head: National Government Division.

“We notice that the company has filed for voluntary liquidation, which we see as a desperate attempt to lobby for intervention by Government and other agencies. We sympathise with the 4 500 staff whose jobs are now on the line. However, this is the consequence of corruption.”

OUTA hopes that company bosses who transact corruptly will take note of these developments, as there are many “Bosasas” and “Oakbays” out there which should also feel the wrath of the banks.

OUTA calls on Government to review all its contracts with African Global Operations and for law-enforcement agencies to ensure that any payments on corrupt contracts are reclaimed.
 
 

Issued by OUTA