State cancels security contracts with Bosasa
Key government departments have cancelled large security contracts with corruption-accused African Global Operations (AGO), formerly Bosasa, according to a Business Day report.
Justice Department spokesperson Crispin Phiri confirmed that courts are no longer being protected by AGO subsidiary Sondolo IT, which has received hundreds of millions of rands for those services.
Chief Justice Mogoeng Mogoeng has publicly expressed concern that the courts were being protected by the company. Former Justice Minister Michael Masutha revealed early in 2019 that the department was still contracted to Sondolo IT on a month-to-month basis, following the failure of the department to prepare the necessary documentation to terminate services once the contract ended in September 2018.
The controversial facilities management company will also no longer be providing security services to OR Tambo International Airport through one of its subsidiaries, Black Rox. The Auditor-General in 2018 found Bosasa Security had received three payments of R3m without Airports Company SA (Acsa) providing any documentation showing that the company's contract had been extended.
Former COO Angelo Agrizzi also testified that the company paid bribes to Acsa executives in exchange for a five-year contract to guard a multi-storey car park.
Group CEO Gavin Watson, certain of his business partners and AGO subsidiaries are all the subject of a SARS inquiry that could see the tax authority claiming massive amounts in unpaid tax from them, notes the Business Day report.
AGO is also fighting a crucial appeal court battle over the group’s voluntary liquidation, one that will have potentially significant implications for its beneficiaries.The Zondo Inquiry into State Capture has heard multiple former Bosasa staff members, including Agrizzi, detail how Bosasa gave gifts and paid bribes and donations to the ANC and several of its most senior officials – as well as the Jacob Zuma Education Trust – in exchange for massive government contracts.
The ANC says it has applied to cross-examine Agrizzi about his evidence, but his lawyers say they have not received any such application from the inquiry.
Watson has yet to testify in response to the evidence given by Agrizzi and others, and has not as yet been subpoenaed by the inquiry to address that evidence.
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