Bosasa blow for PE baby shelter
● Home loses longstanding and biggest sponsor in ‘ripple effect’ of company’s liquidation
One of Port Elizabeth’s largest baby shelters is facing an uncertain future after the voluntary liquidation of African Global, formerly known as Bosasa, meant the shock loss of its biggest donor.
Zanethemba project manager Catherine van Rensburg said African Global had been the home’s major sponsor since 2009 and provided the bulk of its running costs, R35,000 a month at first and then monthly donations of R20,000. “We are devastated.”
The haven would now have to reduce the number of children who could be helped, with a possible downsizing of caregivers also on the cards.
Asked what would happen to the children should the doors not stay open, Van Rensburg said: “The placement of children is controlled and regulated by the courts.
“Now that we won’t receive further funding from African Global, we will find it difficult to keep our doors open.”
She said the support from Bosasa had been huge and included financial help as well as groceries.
The African Global group made headlines over the past two months as Bosasa’s former chief operations officer, Angelo Agrizzi, testified at the Zondo inquiry into state capture about alleged corruption and bribes relating to the firm’s contracts with the government.
Agrizzi was Bosasa CEO Gavin Watson’s right-hand man.
He told the inquiry that every government contract with Bosasa was marred by bribery and corruption.
African Global said on Monday it had received formal notification from its financial institution of the decision to distance itself from the group and that it would close its bank accounts by the end of February.
“To avert a situation whereby the group would not be able to further operate as of March 1 2019, [the] African Global group board applied with various financial institutions, locally and internationally for a trading account,” it said.
“The extensive reputational damage in the past few months, occasioned by negative media reports, has resulted in financial institutions’ determination that the African Global group poses a reputational risk for them as client.”
Van Rensburg said while she had taken note of the allegations, she could only say good things about how African Global had helped the home.
“They donated our running costs and salaries and would also drop off meat and vegetables for our home.
“I got the news on Tuesday [about the voluntary liquidation] and I am devastated.
“I know they also helped creches in Gauteng.
“This is a really tough time for us,” she said.
The home needed money to pay rent and municipal rates, salaries and for nappies, baby wipes and food.
“We can take up to 12 babies but [now] we will have to reduce this number to six.”
Van Rensburg said the home was unique in Port Elizabeth in that it would also take older children in to keep siblings together.
“We took in abandoned and neglected babies and children who were removed from their families,” she said.
“We have six caregivers who work in shifts.
“We have managed to save 150 children since 2008.”
African Global’s statement confirmed that the end of its assistance to 32 creches in Orange Farm, Johannesburg, and other projects was part of the “devastating ripple effect” of the company being forced into voluntary liquidation.
Van Rensburg said prospective donors could contact her on catherine@zanethemba.org