Bosasa
{{Short description|South African company}}
{{Use dmy dates|date=April 2022}}{{Use South African English|date=January 2019}}
{{Infobox company
| name = Bosasa
| logo = Bosasa_logo.png
| logo_size = 150px
| type = Facilities Management
| traded_as =
| industry = Government contracting
| fate = Voluntary liquidation
| founded = 1981
| defunct = 18 February 2019
| location = Krugersdorp, Mogale City
Gauteng, South Africa
| area_served = South Africa
| key_people = {{Unbulleted list| Gavin Watson (CEO) |Angelo Agrizzi (former COO) |Joe Gumede (chairperson)}}{{Cite web |url=https://www.sowetanlive.co.za/news/2009-11-18-all-the-players-in-the-bosasa-group/ |title=ALL THE PLAYERS IN THE BOSASA GROUP |website=www.sowetanlive.co.za |language=en |access-date=2019-02-01}}
Papa Leshabane
Sesinyi Seopela
Ronnie Watson
Jacqueline Leyds
Thandi Makoko
| products = Business services, catering
| revenue =
| net_income =
| assets =
| equity =
| num_employees = 3400
| homepage = [http://www.bosasaydc.com bosasaydc.com]
[https://www.africanglobal.com africanglobal.com]
}}
Bosasa was a South African company specialising in providing services to government, most notably correctional services. It consisted of Bosasa Group, Bosasa Youth Development Centres, and African Global Operations (formerly Bosasa Operations). The company was liquidated in 2019 after whistleblower Angelo Agrizzi revealed the malfeasance in prolonged scandal about its allegedly corrupt relationship with members of the governing African National Congress (ANC), and Democratic Alliance (DA) aired during the Zondo Commission of Inquiry.
History
The company was founded in 1981 as Emafini (Pty) Ltd. After a change of management the company changed its name to Meritum Hostels (Pty) Ltd in 1985 changing its name again to Dyambu Operations (Pty) Ltd in 1996 after signing an agreement with the ANC Women's League controlled Dyambu Trust. Gavin Watson was then made company CEO. The company was renamed Bosasa 2000.{{Cite web |date=2011-03-20 |title=Bosasa just keeps on scoring |url=https://www.news24.com/Archives/City-Press/Bosasa-just-keeps-on-scoring-20150430 |url-status=dead |archive-url=https://web.archive.org/web/20190828101050/https://www.news24.com/Archives/City-Press/Bosasa-just-keeps-on-scoring-20150430 |archive-date=2019-08-28 |access-date=2019-02-01 |website=News24 |language=en}} Gavin Watson bought Bosasa in the year 2000. Watson was well connected to ANC members such as Linda Mti, who was prisoners commissioner from 2001 to 2006.{{Cite news |last=Gevisser |first=Mark |date=2019-07-11 |title='State capture': the corruption investigation that has shaken South Africa |language=en-GB |work=The Guardian |url=https://www.theguardian.com/news/2019/jul/11/state-capture-corruption-investigation-that-has-shaken-south-africa |access-date=2020-02-16 |issn=0261-3077}}
In 2017 the company changed the name of its Bosasa Operations division to African Global Operations.{{Cite web |date=2017-06-26 |title=Scandal-ridden prison services firm Bosasa gets new name |url=https://www.fin24.com/Companies/Retail/scandal-ridden-prison-services-firm-bosasa-gets-new-name-20170626 |access-date=2019-02-01 |website=Fin24}}
On 18 February 2019, the company announced that it would submit to voluntary liquidation as banks intended to close its accounts by the end of the month. Bosasa said that, due to reputational damage arising from corruption allegations, it was unable to find a financial services provider.{{Cite web|url=https://www.news24.com/SouthAfrica/News/breaking-bosasa-confirms-its-liquidation-after-banks-pull-out-20190218|title=BREAKING: Bosasa confirms its liquidation after banks pull out|date=2019-02-18|website=News24|language=en|access-date=2019-02-18|archive-date=2020-04-03|archive-url=https://web.archive.org/web/20200403213245/https://www.news24.com/SouthAfrica/News/breaking-bosasa-confirms-its-liquidation-after-banks-pull-out-20190218|url-status=dead}}{{Cite web|url=https://www.businesslive.co.za/bd/national/2019-02-18-breaking-news-bosasa-to-close-after-banks-pull-out/|title=Bosasa to close after banks pull out|website=www.businesslive.co.za|language=en|access-date=2019-02-18}} Watson died in August 2019 in suspicious circumstances.{{Cite web |last=Cilliers |first=Charles |date=15 September 2019 |title=Gavin Watson was already dead before his crash, private pathologist finds |url=https://citizen.co.za/news/south-africa/investigation/2179378/gavin-watson-was-already-dead-before-his-crash-private-pathologist-finds/ |access-date=2019-09-16 |website=citizen.co.za}}
Government contracts
Then known as Dyambu Operations, the company started providing services to prisons in 1995 when it established the Bosasa Youth Development Centres, a collection of juvenile detention facilities, in partnership with the Gauteng Department of Social Development.{{Cite web |title=BOSASAYDC: Our History |url=http://www.bosasaydc.com/content/4360/4349/our-history |url-status=dead |archive-url=https://web.archive.org/web/20191019093951/http://www.bosasaydc.com/content/4360/4349/our-history |archive-date=2019-10-19 |access-date=2019-02-01 |website=www.bosasaydc.com}} In 2004, the company received its first major government contract when the Department of Correctional Services appointed it to provide catering services to the prison system. The company is estimated to have received government tenders to the value of R12 billion ($918.8 million) between 2003 and 2018.{{Cite web |last=Sarah Smit, Thanduxolo Jika, Sabelo Skiti |date=2019-02-01 |title=The Bosasa tally: R12-billion |url=https://mg.co.za/article/2019-02-01-00-the-bosasa-tally-r12-billion/ |access-date=2019-02-01 |website=The M&G Online |language=en}} Among other things, it operated the Lindela Repatriation Centre in Krugersdorp since 1996.{{Cite web |date=2019-12-11 |title=How Lindela became Bosasa’s meal ticket |url=https://mg.co.za/article/2019-12-11-00-how-lindela-became-bosasas-meal-ticket/ |access-date=2023-05-14 |website=The Mail & Guardian |language=en-ZA}}
Corruption
Bosasa's state contracts had been subject to allegations of impropriety since the mid-2000s,{{Cite web |date=2009-11-20 |title=Prisons graft: Bosasa’s empire of influence |url=https://mg.co.za/article/2009-11-20-prisons-graft-bosasas-empire-of-influence/ |access-date=2023-04-10 |website=The Mail & Guardian |language=en-ZA}}{{Cite web |date=2009-01-30 |title=Prisons graft: Here’s the proof, minister |url=https://mg.co.za/article/2009-01-30-heres-the-proof-minister/ |access-date=2023-05-14 |website=The Mail & Guardian |language=en-ZA}}{{Cite web |last=Basson |first=Adriaan |date=20 March 2011 |title=Report: Prison boss was bribed |url=https://www.news24.com/news24/report-prison-was-boss-bribed-20110320 |access-date=2023-04-10 |website=News24 |language=en-US}} and they were investigated by the Special Investigating Unit between 2006 and 2009.{{Cite web |date=2007-12-07 |title=David takes on Goliath |url=https://mg.co.za/article/2007-12-07-david-takes-on-goliath/ |access-date=2023-04-10 |website=The Mail & Guardian |language=en-ZA}}{{Cite web |date=2009-10-30 |title=Drunk-driving Mti forced to take back seat |url=https://mg.co.za/article/2009-10-30-drunkdriving-mti-forced-to-take-back-seat/ |access-date=2023-04-10 |website=The Mail & Guardian |language=en-ZA}} In August 2018, the company's former chief operating officer, Angelo Agrizzi, announced his intention to become a whistleblower and "provide comprehensive details" about "racketeering, corruption and money laundering that I have been aware of over the last 18 years" at Bosasa.{{Cite web |date=22 August 2018 |title=Bosasa executive to blow the whistle on corruption |url=https://www.news24.com/news24/exclusive-bosasa-executive-to-blow-the-whistle-on-corruption-20180822 |access-date=2023-04-10 |website=News24 |language=en-US}} Over the next two years, Agrizzi testified at length to the Zondo Commission about Bosasa's relationship with ANC and government officials, which he characterised as deliberately corrupt. His account directly implicated President Jacob Zuma and his associates. Indeed, Agrizzi claimed that Bosasa made monthly payments of R300,000 to Zuma, collected on his behalf by former South African Airways chairperson Dudu Myeni.{{Cite web |last=Agency |first=African News |date=28 January 2019 |title=Dudu Myeni 'was powerful', State capture inquiry hears |url=http://www.engineeringnews.co.za/article/dudu-myeni-was-powerful-state-capture-inquiry-hears-2019-01-28/rep_id:4136 |access-date=2019-02-01 |website=Engineering News}}
Other politicians who allegedly received benefits from Bosasa included Cyril Ramaphosa, who reportedly received a R500,000 donation during his 2017 campaign for president of the ANC;{{Cite web |last=Smit |first=Sarah |title=Bosasa, the scandal the ANC can't spin |url=https://mg.co.za/article/2019-01-24-bosasa-the-scandal-the-anc-cant-spin/ |access-date=2019-02-01 |website=The M&G Online |language=en}}{{Cite web|url=https://www.businesslive.co.za/bd/national/2018-11-16-ramaphosa-bosasa-payment-was-for-anc-presidency-campaign/|title=Ramaphosa: Bosasa payment was for ANC presidency campaign|website=www.businesslive.co.za|language=en|access-date=2019-02-01}} minister Nomvula Mokonyane, who Agrizzi said was paid R50,000 a month for years to protect the company from law enforcement agencies;{{Cite web|url=https://www.news24.com/SouthAfrica/News/mokonyane-feels-betrayed-by-zondo-commission-for-not-giving-her-access-to-contents-of-agrizzis-testimony-20190121|title=Mokonyane feels 'betrayed' by Zondo commission for not giving her access to contents of Agrizzi's testimony|date=2019-01-21|website=News24|language=en|access-date=2019-02-01|archive-date=2019-12-09|archive-url=https://web.archive.org/web/20191209225201/https://www.news24.com/SouthAfrica/News/mokonyane-feels-betrayed-by-zondo-commission-for-not-giving-her-access-to-contents-of-agrizzis-testimony-20190121|url-status=dead}} and minister Gwede Mantashe, who Agrizzi said received security upgrades at his properties.{{Cite web|url=https://www.news24.com/SouthAfrica/News/mantashe-wants-to-testify-about-bosasa-security-upgrade-claims-offers-to-take-journos-to-his-homes-20190202|title=Mantashe wants to testify after Bosasa security upgrade claims, offers to take journos to his homes|date=2019-02-02|website=News24|language=en|access-date=2019-02-03|archive-date=2019-12-22|archive-url=https://web.archive.org/web/20191222061406/https://www.news24.com/SouthAfrica/News/mantashe-wants-to-testify-about-bosasa-security-upgrade-claims-offers-to-take-journos-to-his-homes-20190202|url-status=dead}} Agrizzi also said that senior prosecutors Nomgcobo Jiba and Lawrence Mrwebi were bribed to protect Bosasa from prosecution.
In addition, News24 reported that Bosasa had donated over R40 million to the ANC since the 1990s and that it was therefore a significant source of revenue for the party.{{Cite web|url=https://m.news24.com/SouthAfrica/News/anc-accepted-bosasa-millions-for-years-20190219|title=ANC accepted Bosasa millions for years|last=Cowan|first=Kyle|date=2019-02-19|website=News24|archive-url=|archive-date=|access-date=2019-02-19}} Babalo Madikizela, the treasurer of the Eastern Cape ANC, said the Bosasa scandal will make it more difficult for the ANC to raise funds in the future.{{Cite web |last= |first= |date=9 February 2019 |title='#Bosasa scandal will harm ANC financially' |url=https://www.iol.co.za/news/politics/bosasa-scandal-will-harm-anc-financially-19213483 |archive-url= |archive-date= |access-date=2019-02-19 |website=www.iol.co.za |language=en}}
The scandal led to comparisons of Bosasa and its executives to the controversial Gupta family.{{Cite web|url=https://www.businesslive.co.za/bd/national/2019-01-25-state-capture-inquiry-like-the-guptas-bosasas-boss-told-zuma-what-to-do/|title=State capture inquiry: Like the Guptas, Bosasa's boss 'told Zuma what to do'|website=www.businesslive.co.za|language=en|access-date=2019-02-01}}{{Cite web|url=https://citizen.co.za/news/south-africa/2042239/efg-law-firm-to-sue-maimane-and-da-for-defamation-over-bosasa-gupta-allegations/|title=EFG law firm to sue Maimane and DA for defamation over 'Bosasa-Gupta' allegations|last=Cilliers|first=Charles|website=The Citizen|date=27 November 2018 |language=en|access-date=2019-02-01}}
In March 2022, the Zondo Commission published its findings about Bosasa's role in state capture and corruption. The commission found that the company "bribed politicians, government officials, President Jacob Zuma and others extensively. Bosasa and its directors and other officials simply had no shame in engaging in acts of corruption".{{Cite web |last=Davis |first=Rebecca |date=2022-03-01 |title=DAYS OF ZONDO, PART THREE: 'Bosasa simply had no shame' – Watson brothers' company hammered in State Capture report |url=https://www.dailymaverick.co.za/article/2022-03-02-bosasa-simply-had-no-shame-watson-brothers-company-hammered-in-state-capture-report/ |access-date=2022-04-30 |website=Daily Maverick |language=en}} It concluded that "the evidence revealed that corruption was Bosasa’s way of doing business." Agrizzi, Linda Mti, and former MP Vincent Smith were among those indicted on criminal charges relating to bribery by Bosasa.{{Cite news |date=31 May 2022 |title=Fraud, corruption case against Linda Mti, Patrick Gillingham postponed |work=Pretoria News |url=https://www.iol.co.za/pretoria-news/news/fraud-corruption-case-against-linda-mti-patrick-gillingham-postponed-5a83d80f-6131-4712-b7a6-e0f13a8ac120 |access-date=10 April 2023}}{{Cite web |date=2020-10-01 |title=Vincent Smith the first to head to court after blitz of Hawks arrests |url=https://mg.co.za/politics/2020-10-01-vincent-smith-the-first-to-head-to-court-after-blitz-of-hawks-arrests/ |access-date=2023-05-14 |website=The Mail & Guardian |language=en-ZA}}
In March 2023, two of Bosasa's court-appointed liquidators, Cloete and Thomas Murray, were shot dead in a suspected assassination.{{Cite news |date=2023-03-19 |title=Cloete Murray: South African corruption investigator shot dead |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-africa-65007942 |access-date=2023-03-24}}{{Cite web |last=O’Regan |first=Victoria |date=2023-03-19 |title=AGE OF THE ASSASSIN: Police investigate double murder after Bosasa liquidator Cloete Murray and son gunned down in Midrand |url=https://www.dailymaverick.co.za/article/2023-03-19-police-investigate-double-murder-after-bosasa-liquidator-cloete-murray-and-son-gunned-down-in-midrand/ |access-date=2023-03-24 |website=Daily Maverick |language=en}} Freedom Under Law, a legal advocacy organisation, said that the shooting was likely linked to the Murrays' work tracing Bosasa's finances, comparing it with deaths of others investigating corruption such as Charl Kinnear and Babita Deokaran.{{Cite web |title=Killing of Cloete and Thomas Murray deeply concerning - FUL - POLITICS {{!}} Politicsweb |url=https://www.politicsweb.co.za/politics/killing-of-cloete-and-thomas-murray-concerning--fu |access-date=2023-03-24 |website=www.politicsweb.co.za |language=en}}
References
{{Reflist}}
External links
The Zondo Commission's findings on Bosasa were published in four volumes in March 2022:
- [https://www.statecapture.org.za/site/files/announcements/649/Judicial_Commission_of_Inquiry_into_State_Capture_Report_Part_3-1.pdf Judicial Commission of Inquiry into State Capture Report: Part 3 Vol. 1]
- [https://www.statecapture.org.za/site/files/announcements/650/Judicial_Commission_of_Inquiry_into_State_Capture_Report_Part_3-2.pdf Judicial Commission of Inquiry into State Capture Report: Part 3 Vol. 2]
- [https://www.statecapture.org.za/site/files/announcements/651/Judicial_Commission_of_Inquiry_into_State_Capture_Report_Part_3-3.pdf Judicial Commission of Inquiry into State Capture Report: Part 3 Vol. 3]
- [https://www.statecapture.org.za/site/files/announcements/652/Judicial_Commission_of_Inquiry_into_State_Capture_Report_Part_3-4.pdf Judicial Commission of Inquiry into State Capture Report: Part 3 Vol. 4]
{{Jacob Zuma}}
{{Witwatersrand companies}}
Category:Companies based in Gauteng