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Banks ditch Bosasa amid state capture concerns, company set to close down

South Africa’s banks have ditched African Global Operations (AGO), which used to be called Bosasa, amidst allegations of state capture according to ENCA.

The controversial company’s accounts will be closed by the end of February.

This means that the company is going to go into liquidation, putting  4,500 employees out of work, as well as over 3,000 contractors.

News24 confirmed the news with Absa and FNB.

Absa is also cutting ties with Angelo Agrizzi’s family trust account.

Agrizzi testified in the Zondo commission of inquiry into state capture about the massive corruption that AGO was allegedly a party to.

According to the Mail & Guardian AGO scored over R12 billion worth of government contracts, from nearly 40 government departments.

IOL reported in January that Agrizzi said that AGO even paid for the ANC’s 107th birthday cake, as he detailed the gifts the company had given to Cabinet minister Nomvula Mokonyane.

Mokonyane is the current minister of Environmental Affairs.

According to AGO‘s website, “We focus on the Services, Renewable Energy, Human Capital Development and Manufacturing sectors.”

Their statement regarding the company’s liquidation boasts of how they have ‘contributed to the improvement of service delivery in South Africa.’

The company’s influence was so wide ranging that the Daily Dispatch reported that they successfully pressured Jake White into making Luke Watson a Springbok.

According to Sport24, White didn’t want to make Luke a bok, but he was forced to do it by the ministry of sport, which was run by Reverend Makhenkesi Arnold Stofile as part of Thabo Mbeki’s cabinet.

Gavin Watson was AGO’s CEO, and Luke’s uncle.

Luke famously demonstrated his gratitude to his family by proclaiming he wanted to puke on the Springbok Jersey, because “Rugby in SA is rotten to the core and is again run by Dutchmen.”

IOL reported that he later apologised for his outburst, and retired from the sport in 2016.

Gwede Mantashe was also implicated according to TimesLIVE, along with President Cyril Ramaphosa’s son, Andile.

According to The South African, the Democratic Alliance has accused the president of “hiding something serious” after he refused to reveal the details of the contract between his son and the now infamous company.

When South Africa’s banks closed the Gupta family’s accounts amid similar accusations, Mosebenzi Zwane, the then minister of mineral resources, apparently tried to threaten their banking licenses.

This didn’t work because those licenses are granted by the reserve bank, which is independent.

In the ANC’s 2017 national elective conference, the party resolved to nationalise the reserve bank, a move that deputy president David Mabuza reaffirmed in January according to Fin24.

My Take

We are going to see more companies like AGO as the inquiry into state capture continues.

It is important to note that what we know about so far is just the tip of the iceberg, and this is not the sort of iceberg that is threatened by global climate change.

It is also important to note that Jacob Zuma was not the start of state capture in South Africa, with the whole Luke Watson saga we can see the rot had already set in under the Mbeki administration.

And we can see from the ANC’s moves to nationalise the reserve bank that they are moving towards removing one of the major roadblocks to further corruption.

We’re told this is to help fight WMC.

The banking sector does not want to be a party to corruption – we saw the same thing with the Gupta family – and it can resist efforts to force it in that direction because its license is granted by the reserve bank.

If the reserve bank lands up under the direct control of the government the threats that the ruling party can make become a lot more potent. They want to remove some of the barriers to their looting.

That is what this next election really is about. Do we continue to vote for corruption, or do we vote the corrupted party out of power?

And who do we elect into power to replace them?

The use of ethnic, religious or sexual (Such as the LGBT community) scapegoats generally indicates corruption. It doesn’t matter who does it, those who seek to keep us resentful and divided do so in order to more effectively rob us.

How do you stop the angry mob coming after you for all the bad things you’ve done? Get another angry mob to attack it.

That is more or less what racism is in this country – a means for crooked politicians to get away from the anger of our nation. This is why our economy has been maintained in the way it has, this is why you find corruption crossing racial, ethnic and religious grounds.

Part of what AGO did was bribe journalists. The one journalist who was fully named was Pinky Khoabane, who claims it is all lies because she would wouldn’t she? Here’s a tweet from her in 2017.

Here’s another from 2018.

You tell me what she’s about?

The corrupt don’t genuinely care about these things except as a tool to manipulate the masses, and thus you get people who fling the k word around happily working hand in hand with people who talk about WMC in order to fleece the nation.

What I’m looking for in this next election is in part a party that can deliver on competent governance, and one of the signs I’m looking for in that direction is for them to not pander to any particular racial group, not to divide us into different tribes, but to simply push for doing the work that needs to be done.

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