Julius Malema at the EFF manifesto launch 2019 / Image via Twitter: Economic Freedom Fighters

EFF want Bosasa facilities to be “expropriated without compensation”

The EFF reckon they’ve got a solution to the employment crisis that’s set to hit a now-insolvent Bosasa: Make the state take responsibility.


Julius Malema at the EFF manifesto launch 2019 / Image via Twitter: Economic Freedom Fighters

The EFF have issued their response to the news that Bosasa are set to go into liquidation by asking that the government picks up the pieces of the mess that some of its members helped create: The insolvency will see around 4 500 jobs lost at the security services firm.

Their demise has been nothing short of spectacular, as explosive revelations about their “empire built on bribes” took the state capture inquiry by storm. Former top executives have since been charged with corruption by The Hawks, but there’s a very real human cost to these actions further down the chain of command.

How expropriation without compensation would work for Bosasa facilities

The red berets, who are the biggest supporters of land expropriation without compensation, now want to see something similar happen with Bosasa’s commodities. Not only are they asking the government to absorb all of the jobless workers, but they also want the company’s facilities to be redistributed elsewhere for free:

“The EFF calls on all government departments that had contracts with Bosasa to immediately start the process of insourcing all workers who belonged to the company, particularly the security guards. This is the only rational and sensible action the government should engage in.”

“The state should build capacity for catering in prisons and offer to run all youth rehabilitation centres that were under the management of Bosasa. All youth centres owned by Bosasa should be expropriated without compensation because they were established and financed through the proceeds of corruption.”

EFF statement

EFF want banks to get tough on Steinhoff

The writing was on the wall for the company on Monday, when top banks such as FNB and ABSA decided to close Bosasa’s accounts down. With no financial backing, executives and shareholders agreed to liquidate the company and officially bring an end to a 38-year business venture.

The EFF’s statement concluded by demanding that the banks give all Steinhoff-owned companies the same treatment: The group were rocked by a severe corruption scandal at the end of 2017, and shareholders are currently locked in a legal battle with former CEO Markus Jooste to recover their lost funds.

Bosasa and the ANC

The ANC still have a deal in place with Bosasa to provide immigration detention facilities to South Africa. That will soon be terminated. The government have faced fierce calls to tear up their contracts with the tainted organisation, but remained quiet on the matter.

It seems like a decision has finally been made for them, but their political opponents in the red uniforms want them to take responsibility for a mess that’s partially their fault. It’s also estimated that 3 000 contractors are now set to lose their lucrative deals with the firm, as Bosasa look set to go out of business on Thursday 28 February.

  • You can read the full EFF statement here: