PRETORIA – Government departments have initiated emergency plans to ensure that service delivery is not interrupted when African Global Operations ceases its operations at the end of this month.
The company, formerly known as Bosasa, announced on Monday that it had opted for voluntary liquidation after banks announced they would close the company’s accounts, citing reputational risk.
More than 4,500 employees and 3,000 contractors are to be let go.
The Correctional Services Department says that only a third of its prison population is affected by the liquidation of African Global Operations, but it has already established a team to ensure that food services at the prisons are not affected.
The Home Affairs Department says it is urgently seeking a meeting with the company and is taking legal advice.
The firm operates the Lindela Repatriation Centre where it provides security, accommodation, food and medical services.
The liquidation of the company has been broadly welcomed, with the Organisation Undoing Tax Abuse saying that it is a warning that corruption has consequences.
So far, six former Bosasa and prisons officials have appeared in court on corruption charges.