Bosasa has warned its decision to file for voluntary liquidation could result in more than 4,000 employees losing their jobs.
The company, now known as African Global Operations, has been informed that all banks will close down its accounts.
Bosasa former executives have told the state capture commission how the company paid millions of rands to government officials to secure lucrative contracts with the state.
In a statement, Bosasa says the impact of its closure will have far-reaching implications not only on employees but on their families and on township projects.
“In South Africa, every employed person supports about five other people and the African Global Group has in excess of 4,500 employees; resulting in 25,000 people being impacted by the possible loss of employment. The potential termination of 108 unemployed black youth that is currently on learnerships and internships, who through this initiative are receiving a monthly stipend whilst gaining valuable workplace experience.
“The devastating ripple effect on suppliers and contractors is unparalleled as the group has in excess of 3,100 suppliers; many of whom are small businesses dependent on the work received from the Group. The 32 Creches in Orange farm that the Group is supporting with early childhood development initiatives and numerous other projects.”
However, it says the decision to file for voluntary liquidation has not yet affected current operations.
Bosasa says staff will remain employed until informed otherwise.
The company also blames the media for the reputational damage it has suffered and claims the decision has nothing to do with its financial stability or liquidity status.
At the same time, Bosasa employees say they’re worried about the job security after the company announced its voluntary liquidation.
Employees on Monday protested at Lindela Repatriation Centre where they’ve made demands relating to working hours and transport allowances.
Source: EWN
