Gauteng terminates Bosasa contract
The Gauteng provincial government has decided to terminate all contracts with state capture implicated company, African Global Operations, formerly known as Bosasa.
During Premier David Makhura's State of the Province Address, he made a commitment that the Gauteng government will undertake a review process of all contracts involving Bosasa.
Bosasa has been embroiled in allegations of state capture after its former COO Angelo Agrizzi revealed how the company allegedly bribed government officials to secure lucrative tenders.
The company has since filed for voluntary liquidation following a decision by FNB and Absa to close its banks' accounts.
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Makhura's spokesperson, Castro Ngobese, says the process to fully terminate the contracts will take two to three months.
"The provincial government, as part of its stance on zero-tolerance for corruption, will not be doing business with any service provider or entity that is involved in corrupt practices.
"All contracts with Bosasa will be terminated. Our legal team has been instructed to initiate the termination with immediate effect," Ngobese said.
The provincial government's department of social development had a contract with Bosasa to help facilitate accommodation for children in conflict with the law.
Ngobese said: 'The department has so far paid Bosasa R600 million over the past 15 years.'