Staff Reporter.
The Supreme Court of Appeal (SCA) has set aside a high court judgment that effectively halted the most consequential work by the African Global Holdings, (formerly known as Bosasa) liquidators.
It is the second major loss at the SCA for the family of the late Bosasa CEO Gavin Watson, and the decision will have major implications for the ANC and several of its leaders who benefitted from Bosasa’s largesse.
The directors of African Global Holdings and two Bosasa companies — Sun Worx and Kgwerano Financial Services — had gone to court in December 2019 to stop the sale of assets of Bosasa that happened by public auction from December 4-6 2019.
The high court in Johannesburg ruled in favour of the directors in August 2020.
It held that the liquidators were legally prevented from proceeding with the auction and any subsequent sales of the Bosasa assets, due to the business rescue application having been “made” on December 3 2019, before the auction.
The high court held that the business rescue application triggered the suspensions of the Bosasa companies’ respective liquidation proceedings in terms of the Companies Act. It also declared any sales on auction were unlawful and that the transfer of property as the result of the sale on auction was prohibited.
The liquidators appealed against those orders.
Bosasa’s troubles began when revelations were made during the state capture commission of inquiry by, among others, the former COO of Bosasa, Angelo Agrizzi, on how Bosasa had captured the state.
Nomvula Mokonyane, Gwede Mantashe, Zweli Mkhize and Andile Ramaphosa may soon be called before a confidential inquiry to explain why the benefits they reaped from Bosasa – including braai packs, booze, security cameras and millions of rands in payments to the ANC and a company owned by Ramaphosa – should not be paid back.
It also paves the way for the liquidators to take serious steps against members of Watson’s family and former Bosasa bosses, including Agrizzi, who benefitted from the corrupt schemes that were, according to the State Capture Commission, perpetrated on an “industrial scale.”