Bosasa headquarters sold for R14m to Fidelity Security group

African Global Operations headquarters were auctioned for R14m on Thursday.

The company, formerly known as Bosasa, is situated in Krugersdorp and boasts large, green manicured lawns with an assortment of buildings, including a restaurant, canteen, warehouse and offices.

The property was bought by security service provider Fidelity.

Speaking to TimeLIVE on the sidelines of the auction was Fidelity CEO Wahl Bartmann.

“We have huge facilities we can use for the accommodation of our staff,” he said.

“There is a lot of office space and a lot of our businesses and admin people will be moving into this area as soon as possible.”

Baartman said he expected to spend much more than R14m on the property.

Fidelty was not deterred by the history of the property under Bosasa - which had been tainted by allegations of fraud and corruption related to government tenders.

“We don’t want to be associated with that. It is an asset ... and for us, we will see that we change the branding and everything. Our culture, vision and mission will be on this building and businesses and that is how we will take it forward,” he said.

Another property that went under the hammer on Thursday houses the Lindela Repatriation Centre and youth development centres.

Lindela houses undocumented migrants pending their deportation. The Krugersdorp-based centre was run by African Global Operations.

The property it lies on was auctioned for R60m following a fierce and competitive bidding process that started at R30m.

The auctioneer said there were currently two leases totalling about R1m per month on the property.

The lease on these expires at the end of October 2020.

“I need to make you aware of the fact that [with] the department of public works and infrastructure, there is a confirmation period of 14 days,” the auctioneer clarified before the bidding.

“They are having the first right of refusal in this confirmation period so please bare that in mind. They are here at the auction today,” he added.

According to miltons.law.za, this refers essentially refers to contractual right, affording the holder the first opportunity (in this case the department of Public Works) to purchase property, before it can be offered to another buyer.

This means that the department still has 14 days to decide whether they want to purchase the property instead. 

This large property was used as a mining compound before being converted into a youth development and repatriation centre. It has a workshop, a residential development containing nine buildings and a soccer field.

It’s buyer was reluctant to speak to the media, revealing only that he had bought the property on behalf of  a group of people.

African Global or Bosasa has come under the spotlight at the Zondo commission into state capture, where allegations have been made that the company enjoyed fraudulent tenders worth billions of rands from the state for more than a decade.

Thursday marked the second day of the three-day auction, where assets  including passenger and commercial vehicles, a copper plant and various commercial properties are being sold.

Park Village Auctions and Bidders Choice received the instruction from the appointed liquidators to dispose of the assets, which stem from subsidiaries of African Global/Bosasa in liquidation.

The companies in question are Global Technology Systems, Bosasa Properties, Rodcor, African Global Operations, Watson Corporate Academy, On-IT-1, Bosasa IT, Bosasa Supply Chain Management, Leading Prospect Trading 111, Bosasa Youth Development Centres and Black Rox Security Intelligence Services.