Minister Masutha updates the nation on African Global Operations (Bosasa) contracts

MainBriefMinister of Justice and Correctional Services, Adv. Michael Masutha, outlined measures being taken to resolve matters related to contracts between departments and entities within his portfolio and African Global Operations, formerly known as Bosasa, during a media briefing held on 25 February 2019 in Pretoria. The briefing follows testimonies given at the Judicial Commission of Inquiry into allegations of State capture, regarding irregularities and allegations of corruption involving some officials of the Department of Justice and Constitutional Development (the doj & cd) and the Department of Correctional Services. The minister was joined by his counterpart, Minister of Health Aaron Motsoaledi, Deputy Ministers John Jeffery and Thabang Makwetla, as well as National Commissioner, Mr Arthur Fraser, Director-General of the doj & cd, Advocate Vusi Madonsela and Head of the Special Investigating Unit (SIU), Advocate Andy Mothibi.

Minister Masutha said the ministry had engaged with the accounting officers to consider the implications of the latest developments relating to contracts awarded to African Global Operations and its subsidiaries. He focused on contracts involving DCS, the doj & cd and investigations into corrupt activities within the Office of the State Attorney.

He indicated that he has undertaken in-loco inspections of kitchens at correctional centres where the provision of nutritional services are outsourced through public-private partnerships. He said African Global Operations caters for the nutritional needs of 46 434 (29%) inmates, at 26, out of 226, correctional centre kitchens, while 112 754 offenders (71%) receive nutrition services in-house. This was the last contract that DCS had with African Global Operations or any of its subsidiaries.

Two banking institutions announced that they would be closing the banking accounts of the company. In light of this, Masutha said that the department has given African Global Operations a 30-day notice to terminate the contract for the provision of nutritional services at the seven management areas. The minister hastened to point out that DCS has assembled a team of experts to develop and implement a business continuity plan to mitigate against possible disruption in the provision of nutritional services.

The minister also indicated that, in the end, we have no other option, but carry a common national obligation to build a winning nation free of all forms of corruption including theft, fraud, bribery, extortion, nepotism and patronage. Where these are detected, we will not hesitate to act in the public interest and put an end to malfeasance.

 

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