Bosasa: Solidarity will take action against Watson, and will support employees

19 February 2019

Solidarity today said that it is unacceptable that employees have to bear the brunt for corrupt persons and practices while those very people come off scot-free. 

This comes after Bosasa had announced its voluntary liquidation. Since the announcement employees affected by it have started protesting outside Bosasa’s head office in Mogale City.

In view of this, Solidarity has confirmed that it would interrogate Bosasa CEO, Gavin Watson, by means of a process provided for in section 65 of the Insolvency Act to expose his share in the Bosasa debacle.

“This is a very sad story in which lives are destroyed at the hands of corrupt businessmen and politicians. We will certainly see to it that those who caused the Bosasa debacle are brought to book,” Anton Van der Bijl, head of Solidarity’s Labour Law Services, said.

According to Van der Bijl, the trade union also confirms that it would assist its members at Bosasa during the liquidation process. “In terms of section 38 of the Insolvency Act a liquidator must first consult with the employees’ trade unions before their services may be terminated,” Van der Bijl explained.

According to section 38 of this Act, employees’ contracts of service are suspended the moment a liquidation order is issued. For this reason, employees do not have to render their services and they can claim their loss of income from the Unemployment Insurance Fund.

Van der Bijl also explained that upon termination of their contracts, employees are regarded as creditors of the company, and they can claim amounts due to them. “At the time of the termination of a contract a former employee can lodge a claim for arrears with the liquidator. Solidarity will also assist its members in this regard,” Van der Bijl confirmed.

“In view of the shocking revelations about corruption at Bosasa that has been rampant for quite some time, and the innocent workers being affected we have no choice but to help bring the guilty parties to book and to assist the workers at the same time,” Van der Bijl concluded.

Issued by Francois Redelinghuys, Spokesperson, Solidarity, 19 February 2019