Court upholds Bosasa auction

Park Village Auctions will almost certainly be auctioning off the assets of African Global Operations, formerly known as Bosasa, from December 4 to 6, after the Supreme Court of Appeal (SCA) in Bloemfontein yesterday found in favour of keeping the company in liquidation.

In their ruling, the judges pointed out that the closure of Bosasa’s banking accounts had been a sign that it was commercially insolvent, as it was unable to fulfil its immediate financial obligations.

Mike Hellens SC had appeared for Bosasa and argued that the company’s assets exceeded its liabilities and the liquidation had been based on incorrect arguments.

He also contended that Bosasa directors had received incorrect legal advice to opt for voluntary liquidation and said the company was financially sustainable, despite the huge reputational damage it suffered this year at the Commission of Inquiry into State Capture and in the media.

The SCA thus decided to uphold the appeal by the provisional liquidators to place the company into voluntary liquidation, which has paved the way for the company’s full liquidation.

Had the ruling gone the other way, control would have been handed back in its entirety to the directors, taking them out of liquidation.

In next month’s auction, items including the late Bosasa chief executive Gavin Watson’s BMW X5 will be under the hammer, along with numerous vehicles, office furniture, catering equipment, workshop and gardening tools, computer equipment, security equipment, office furniture, household furniture and several properties.

The properties include the controversial Lindela Repatriation Centre as well as the company’s head office and copper plant. A viewing is advertised for December 3 from 9am to 3pm.

Bosasa went into voluntary liquidation in February this year following banks announcing that they would be closing all of their accounts due to corruption allegations. They subsequently tried to reverse the liquidation.

However, following the court judgment, Watson’s nephew Jared Watson, who is also the executor of his uncle’s estate and who said he has been assisting the company in accounting matters, told Saturday Citizen that the matter was now less clear but they would try to contest it anyway to stop the auction.

“We are in a bit of purgatory right now,” he said.

Park Village Auctions’ Clive Lazarus said on Facebook yesterday: “Park Village Auctions and Bidders Choice have received due instruction from the appointed liquidators to proceed with the large undertaking of disposing of assets, which stem from subsidiaries of African Global/Bosasa in liquidation.