'Bosasa' applies for urgent court interdict to stop auction sale
The embattled African Global Holdings has applied for an urgent court interdict in an attempt to prevent the highly publicised sale of the group of companies' assets on auction.
The board of the group of companies, formerly known as Bosasa, is also trying to save companies that fall under the African Global Group from going into liquidation.
This is contained in court documents filed by African Global Holdings together with Sun Worx and Kgwerano Financial Services.
The respondents are the provisional liquidators of African Global Operations and other companies linked to the Watson family.
In the court papers Jared Watson, the director of African Global Holdings, seeks relief that six African Global Group companies be placed under supervision of business rescue practitioner and that business rescue proceedings be commenced.
The companies AGO, Bosasa Properties, Global Techology Systems, Leading Prospect Trading, Bosasa Youth Development Centres and Black Rox Security Intelligence Services, which are all in liquidation.
Watson was appointed the company's director two weeks ago.
The African Global Holdings, came under the spotlight last year when former chief operating officer Angelo Agirizzi testified at the Zondo state capture commission of inquiry that former company boss Gavin Watson paid bribes to high profile politicians to avoid prosecution.
In the court papers Watson lists the group's clients as having from CTM, SAA, Anglo Gold Ashanti, department of basic education, BMW, FNB, Eskom, CSIR, Ford, Continental, Wits University, University of Free State and Toyota, among others.
Watson said that by February 28 2017, the net asset value of African Global Group hovered at R773 408 000 with an after tax profit amounting to R56 716 000.
However after the allegations made by Agrizzi at the Zondo commission, FNB and Absa closed the banking facilities of AGO Group.
He said African Global Group unsuccessfully tried to find another bank. "This was catastrophic for its continued business operations," said Watson, adding that the group was no longer in a position to pay their 4 500 employees and suppliers or to receive payment of amounts due...
"On 21 February Mr (Cloete) Murray arrived at African Global Group's headquarters in Mogale City accompanied by security guards and over the next two days took control of the premises and the businesses and excluded the staff and directors.
"As most contracts with African Global Group allowed for a cancellation if the companies entered into liquidation, the consequential effect, was that all African Global Group's contracts with government were cancelled and all private entities… followed suit," said Watson.
He added that the closure of the company's bank accounts workforce resulted in the workforce being whittled down to a skeleton staff of 50 people by last week Saturday.
He said on October 26 the liquidators were granted leave to sell movable assets of six of the 11 African Global Group companies, sell immovable properties of Bosasa Properties.
Watson said he recently read in a number of newspapers about the auction sale of assets scheduled to run from Wednesday until Friday.
He said as no consent has been granted by the board of African Global Holdings, the intended sale of assets by the auction will be in contempt of an order of the court as the "intended auction will be outside the powers afforded to the provisional liquidators and any sale will be null and void and of no force and effect".