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EOH board to receive report on internal probe

May 31 2019 08:08
Lameez Omarjee, Fin24

The EOH [JSE:EOH] board of directors will on Friday receive a report on an internal investigation into public sector contracts from ENSafrica.

This comes after allegations of corruption have emerged at the group. In February CEO Stephen van Coller authored a letter to stakeholders assuring them that effort is being made to clean up the past. The firm partnered with ENSafrica to conduct a number of investigations to help the IT services group to implement various governance and compliance initiatives.

"We are also passionate about completing our reorganisation in a manner that creates best-in-class governance and transparency, while retaining the entrepreneurial and innovative spirit that has made the Group the most successful technology business in Africa," van Coller said at the time.

"EOH is committed to being a relevant force for good and I’ll continue meeting with all stakeholders to drive open engagement," he added.

Earlier this year EOH announced one of its subsidiaries would no longer be a reseller of Microsoft licences. Microsoft did not provide EOH reasons for terminating the contract, but the software company is conducting its own probe into EOH's public service contracts. Microsoft's investigations are expected to take between six and 12 months to conclude, EOH previously said. Pending the outcomes of the investigations, Microsoft cannot enter into service agreements with EOH.

Following Microsoft's decision, four out of the group's seven board members had resigned in February, Bloomberg previously reported. The moves saw the EOH share price fall as much as 11%.

Founder Asher Bohbot also stepped down but has remained at the firm in an advisory capacity and will do so till the end of July, Fin24 previously reported. An interim board chairperson, Jesmane Boggenpoel, but the search for a permanent chairperson is ongoing.

According to a notice to shareholders issued by EOH on May 21, 2019, ENSafrica has been on track in completing the investigation on time.

"The board will, on receipt of the report, take the necessary time to assess the detail thereof and where necessary engage with relevant stakeholders," the notice read.

The full report will not be made public, only select parts will be released to the market, the group clarified. "Following proper and acceptable progress of this process, the key elements of the report will be presented to the market. This is anticipated to be possible in June 2019," the notice read.

eoh  |  ens africa  |  microsoft  |  investigations
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