Bosasa says there’s no auction, it’s all ‘false information’

After news broke on Wednesday that Park Village Auctions would be auctioning off the assets of African Global Operations, formerly known as Bosasa, from December 4 to 6, the company itself has responded by saying it’s nonsense.

An advertisement on the website of liquidators Sechaba Trust, which is run by Cloete Murray, claimed that items including late Bosasa CEO Gavin Watson’s metallic blue BMW X5 would be going 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 included the controversial Lindela Repatriation Centre as well as the company’s head office and copper plant.

A viewing was advertised for December 3 from 9 am to 3 pm.

Since then, Park Village Auctions have also started advertising the auction, with a post going on to Facebook about it at noon on Thursday.

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.

Watson’s nephew Jared Watson, who is also the executor of his uncle’s estate and who has been assisting the company in accounting matters, responded on Thursday morning to the news by saying that numerous corporate and legal technicalities would stop any such auction from going ahead.

“There is no auction occurring regarding Bosasa/African Global assets in December,” he said.

“This is merely false information being spread most likely by Cloete Murray, who has no authority to bring an auction.”

He provided as evidence two court documents that stipulated what would be required to sell any Bosasa assets.

“No assets can be sold by the liquidators without the consent of the directors of the company, and no such consent has been given.

“In fact, to the best of my knowledge, Cloete Murray does not even have the consent of the other provisional liquidators, something he would require even if the directors of Bosasa consented. Which, as I have said, they have not consented.”

Watson added that when the extension of powers of the liquidators was granted, the court had instructed that no assets of Bosasa companies could be sold without having consulted the directors, and receiving the express consent, of African Global Holdings, African Global Operations, as well as whatever subsidiary owned the asset.

“None of these consents has been given,” said Watson.

“I suspect as Cloete Murray has no educational background in law or accounting, he may not understand this, however, it is the legal reality.”

When called for comment, Murray did not want to respond about the dispute over the phone and asked for questions to be emailed. This article will be updated with his response, once received.

Park Village Auctions (PVA) themselves confirmed that, as far as they were aware, the auction was going ahead.

They said on Facebook: “Assets belonging to several of Africa [sic] Global Operations (formally BOSASA) entities will be auctioned by Park Village Auctions, in association with Bidders Choice. That’s the word from PVA Director, Clive Lazarus, who confirmed speculations on Wednesday the 20th of November.”

In his official statement, Lazarus said: “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.”

The companies in question were Global Technology Systems (Pty) Ltd, Bosasa Properties (Pty) Ltd, Rodcor (Pty) Ltd, African Global Operations (Pty) Ltd, Watson Corporate Academy (Pty) Ltd, On-IT-1 (Pty) Ltd, Bosasa IT (Pty), Bosasa Supply Chain Management (Pty), Leading Prospect Trading 111 (Pty), Bosasa Youth Development Centres (Pty) Ltd, Black Rox Security Intelligence Services (Pty) Ltd, giving rise to the extensive variety of lots to be sold, they confirmed.

“So vast is the collection of assets to be sold that the auction will take place over three days from 4-6 December, at the African Global Operations’ Smart Global Campus located at number 1 Windsor Road, Luipaardsvlei, Krugersdorp.

Lazarus described the sale as having “emporium-like proportion with a substantial assortment of goods”.

“From an entire copper plant to commercial properties, magnificent high-end furniture, to commercial and passenger vehicles that range from entry-level to luxury SUVs — you name it, you’ll find it.”

It’s understood that Bosasa’s lawyers have already sent a letter to the auctioneers to advise them of their legal position and rights. The auctioneers, however, said the matter needed to be resolved between the liquidators and Bosasa, and as far as they were concerned, the auction would still be happening.