EOH has filed civil claims and is suing a number of former EOH executives including Asher Bohbot (former CEO), John King (former chief financial officer), Jehan Mackay (former head of public sector) and Ebrahim Laher (former head of EOH International) for a total of about R6,4-billion in damages incurred by EOH.
This is according to a statement from EOH, about the final actions in closing off its inherited legacy issues and holding those responsible for the governance failings that took place accountable.
The statement describes how, when the new EOH board mandated ENSafrica to conduct a comprehensive investigation into the large public sector contracts, the group committed to be transparent on the process, the outcomes, cooperate with authorities, prosecute where there was wrongdoing and implement the correct and appropriate governance frameworks.
It was through that process that a number of governance failings, including unsubstantiated payments, tender irregularities and unethical business practices were uncovered, it adds. The new board throughout, ensured transparent cooperation with the relevant authorities including the SIU, Hawks and the Enquiry into State Capture.
The actual losses incurred as a direct and indirect consequence of the wrongdoings which included revenue lost due to reputational damage, fines, settlements and the ENSafrica investigation were substantial, according to EOH. Furthermore, significant man-hours were spent by the various internal teams dedicated to the investigation as well as dealing with the consequences of the wrongdoings.
Stephen van Coller, EOH Group CEO, says: “It has been no easy feat getting to this point. The new EOH leadership team is immensely proud of everyone who has been involved in this process of saving the jobs of many people and ensuring EOH’s continuing support for our customers in their critical digitisation journeys. As a result of these efforts EOH remains a leader in the ICT sector in South Africa.
“EOH employees have shown immense loyalty and grit as we have navigated the past two years and the Group can now focus on the of building EOH 2.0 – a unique business with innovative solutions driven by incredibly skilled and passionate people.”