- IT company EOH is paying back R191 million to the Department of Water and Sanitation.
- The company has been making strides in righting its ship and exposing alleged corruption among its own employees.
- EOH contacted the SIU to investigate the R470 million tender deal between itself and the department.
Johannesburg-based IT company EOH was found to have “unduly benefitted” from contracts it received from the Department of Water and Sanitation (DWS) by the SIU, South Africa’s corruption-busting task force.
In response to these findings, EOH has reached a settlement with the department and the SIU and will pay R191 million back to the government.
The SIU discovered the tainted tender agreements between the department and EOH after investigating the affairs of the DWS, according to SIU spokesperson Kaizer Kganyago.
An investigation was launched by SIU last year into tender deals worth R470 million between EOH and the DWS.
EOH has been looking to clear its name in the matter for some time now, as its new management team led by Group CEO Stephen van Coller, contacted the authority about possible corruption within itself.
“SIU was also contacted by EOH with the purpose of informing the unit of possible fraud and corruption involving employees of its subsidiary, EOH Mthombo, and third parties who allegedly colluded with officials of DWS in relation to contracts that EOH had concluded with DWS,” Kganyago added.
In 2019, after an internal investigation, the company reported on alleged fraudulent payments made by some of its employees and made efforts to begin compensating the government for “identified irregularities,” such as those found in the DWS contract.
As part of the payment schedule included with the settlement, EOH will have to pay a first upfront payment of R65 million before 30th November 2022.
This will be followed by the first instalment of R3.4 million to be paid by 1st January 2023. “Thereafter on the first business day of each succeeding calendar month until the debt is fully settled,” Kganyago said.
SIU’s spokesperson made it clear that the amount of the settlement does not clear the company of paying any further amounts they shall owe if more money dealings are uncovered by the SIU’s ongoing investigation.
“Neither does the agreement waive the SIU’s rights to bring any action or application before the High Court or Special Tribunal to recover any further amounts of money that may be due to it or DWS,” they said.
The settlement agreement also does not exonerate any person in the company from being held criminally liable for any criminal conduct uncovered by the investigation into EOH Mthombo, DWS or any other third party.
“EOH board and executive leadership express their gratitude to the SIU and DWS for their professional engagement and in working with EOH to reach a settlement agreement,” says Van Coller about the DWS investigation, quoted by ITWeb.
The R191 million settlement is not expected to affect the company in any long-term capacity. According to its 2021 annual results listed on its website, the company made R667 million in profit (adjusted EBITDA) for the year ended 31st July.
[Source – SA News]
