Michael Masutha. Picture: Bongani shilubane.
Michael Masutha. Picture: Bongani shilubane.

Correctional Services serves Bosasa 30-day notice to cancel contract

By Khanyisile Ngcobo Time of article published Feb 25, 2019

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Pretoria - The Department of Correctional Services (DCS) has served African Global Operations, formerly Bosasa, with a 30-day notice to terminate its contract to provide food for inmates. 

This was announced by  Justice and Correctional Services Minister  Michael Masutha at a media briefing on the department's review of contracts with the  embattled facilities management company.

Earlier this month, Masutha confirmed that the department was reviewing the contracts it had with Bosasa following damning allegations made at the Zondo Commission of Inquiry into state capture. 

The minister confirmed that Bosasa had notified the department of its intention to file for voluntary liquidation. 

"Consequently DCS served African Global Operations with a 30-day notice to cancel the contract for nutritional services at seven management areas.

"This was the last contract DCS had with African Global or any of its subsidiaries."

African Global Operations last week confirmed it was filing for voluntary liquidation after two major banks notified it of the intention to close the company's accounts. 

Masutha also revealed that correctional services officials implicated at the state capture inquiry were requested to provide reasons why they should not be suspended. 

Furthermore, the minister confirmed that the department had implemented a business continuity plan to "ensure that the provision of nutritional services is not disrupted".

"The department has developed an alternative food services plan to accommodate the viability of insourcing nutritional services," he said. 

Masutha also spoke of the Department of Justice and Constitutional Development's security contract with Bosasa subsidiary Sondolo IT. 

According to Masutha, Sondolo had a contract with the department to provide, install and manage security at various court buildings as well as the department's head office. 

The contract was extended for a further 36 months in 2015, which lapsed in 2018. Since then, the contract continued on a month to month basis.

Masutha on Monday confirmed that this would end soon and that a new contractor would be appointed. 

"The conduct of relevant officials in the security section, coupled with the serious allegations made at the Zondo commission, has led the department to secure the services of an audit and advisory firm to review all security contracts awarded since 2006," he said. 

Earlier this year,  damning testimony at the state capture inquiry by former Bosasa employees revealed the company's corrupt relationship with department officials, government ministers as well as ANC leaders. 

The most explosive testimony came from former Bosasa COO Angelo Agrizzi, who told the commission that Bosasa spent between R4 million and R6 million on bribes per month.

Agrizzi also revealed that Bosasa manipulated tender processes at the department to suit its needs and that the company would sometimes be awarded contracts without following due process.


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