Holomisa was commenting after the company said in a statement on Tuesday that it took the step after its financial institution, reportedly Absa, said it would be closing the company's bank accounts by the end of February, citing reputational risk with being associated with AGO.

The UDM leader said that the Zondo Commission should issue an interim report setting out what should be done with respect to Bosasa's assets and how the "money that they had siphoned", be returned.

He said the company should not be allowed to voluntary liquidate itself while the inquiry has not issued any finding on what should be done about the money "that they had taken".

The announcement by African Global Operations on Monday follows damning revelations of endemic bribery and corruption carried by Bosasa in its dealings with state contracts, particularly the Department of Correctional Services.

Several former Bosasa officials, including former Correctional Services Commissioner, Linda Mti, have already been charged in connection with a long-running investigation into allegations of corruption involving the company and its head, Gavin Watson.

In a statement on its website, African Global Operations said that the extensive reputational damage, occasioned by negative media reports, resulted in financial institutions determining that the company poses a reputational risk for them as clients.

The company said that the decision by the financial institutions is not based on its liquidity status and financial stability.

"In South Africa, every employed person supports about five other people and the African Global Group has in excess of 4500 employees resulting in 25 000 people being impacted by the possible loss of employment," it said.

It said that a further 108 youths on learnerships and internships will also be affected while the company's extensive supplier base, numbering more than 3000, will also bear the brunt.

Algoa FM