South Africa’s Bosasa Applies for Liquidation as Banks Close Accounts

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.

Source: Reuters

(Reporting by Emma Rumney; Editing by Kirsten Donovan)