AGO's board placed the company under voluntary liquidation on February 12.

In a supplementary affidavit, provisional liquidator Cloete Murray reveals that the board took a decision to pay Watson the bonus of R10m on January 21, 2019.

He was paid the R5m, over and above his usual remuneration, on January 30, 2019.

Watson read but did not respond to texts sent on Tuesday seeking his comment on the matter.  

Three family members added to payroll

Murray's affidavit was filed in respect of proceedings that are underway in the South Gauteng High Court in Johannesburg. AGO's directors filed an urgent application on March 4 to try and reverse the liquidation.

Murray is opposing the application, arguing that the directors, including Watson and AGO chairperson, Joe Gumede, no longer want him as a liquidator because he is investigating their affairs.

Watson, Murray further reveals, added three of his family members and alleged long-time girlfriend Lindie Gouws to the payroll of AGO, and they were paid unknown amounts ostensibly as "salaries".

"The distinct impression is created that the appointment of [Murray] was not anticipated by the actual protagonists behind the subject companies and that manifestly, due to the fact that he has directed a magnifying glass to their affairs, he is considered to have overstayed his welcome," the affidavit reads.

Murray, in a 107-page liquidator's report, also points out why the companies are indeed insolvent.

Due to the cancellation of the company's banking facilities by FNB and ABSA, Murray argues the "inescapable conclusion" is that the companies under the AGO banner have no prospect of being commercially revived.

Independence of provisional liquidator questioned

Both banks decided to sever their relationship with AGO and its various subsidiaries following two weeks of explosive testimony before the state capture inquiry by Angelo Agrizzi, the former chief operations officer of AGO.

Agrizzi revealed how, led by Watson, the company paid millions of rands in cash bribes to various government officials and political leaders in exchange for securing multibillion-rand contracts from a number of state departments.

Murray argues in his report to the court that it is for this very reason that any attempt to remove him should be viewed in a serious light.

He has also questioned the independence of his fellow provisional liquidator, Ralph Lutchman, who was appointed based on a number of requisitions signed by AGO chair Gumede.

Murray argues that there is no guarantee that Lutchman will do the job of a liquidator properly, considering he was appointed by the same individuals he would have to investigate.

"There are sinister aspects in the management of the companies' affairs which ought to lead one to the conclusion that liquidation proceedings are in fact required under the prevailing circumstances," Murray argues.

According to his report, AGO made a gross profit of R266m for the financial year that ended in February 2017.

Since the allegations by Agrizzi, AGO's main revenue stream - two contracts with the department of correctional services - has been cut off.

The Department of Correctional Services officials confirmed to Murray that there is no possibility of the contracts being revived.

The matter continues in court on Tuesday.

News24