South African firm Bosasa applies for liquidation after banks close accounts,what you need to know…

PUBLISHED: Mon, 18 Feb 2019 11:26:04 GMT

JOHANNESBURG (Reuters) – South African firm Bosasa has applied for voluntary liquidation after its lenders said they would close its accounts due to reputational risk, the firm said in a statement on Monday.

“The extensive reputational damage in the past few months, occasioned by negative media reports, has resulted in financial institutions determination that the… group poses a reputational risk for them as clients,” it said.

A former executive of Bosasa, now called African Global Operations, was arrested earlier this month alongside five others after testifying at a judicial inquiry that he bribed politicians and bureaucrats to secure government contracts for the company.

Reporting by Emma Rumney; Editing by Kirsten Donovan

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