First National Bank (FNB) and Absa have informed beleaguered facilities management group Bosasa that their bank accounts will be closed.
News24 has independently confirmed that FNB, the controversial group’s long-time banker, is severing ties with the company led by CEO Gavin Watson.
Absa is also cutting ties with the group, as well as the family trust account of former chief operating officer Angelo Agrizzi.
Absa spokesperson Songezo Zibi told News24 that the bank does not comment on issues surrounding its clients. FNB similarly declined to comment, citing client confidentiality.
Agrizzi has turned against Watson and Bosasa, now trading as African Global Operations, and has testified about the company’s alleged decade of state capture before the Zondo Commission.
eNCA is reporting that the banks’ decision has caused Bosasa to go into voluntary liquidation, meaning 4 500 employees will lose their jobs.
This is a developing story.