EOH Holdings CEO Stephen van Coller has called on anyone with evidence of corruption involving the JSE-listed IT services group to bring it to him as he attempts to “root out” any “historical, unethical business practices both within EOH and the broader country”.
TechCentral reported exclusively on Monday that Microsoft terminated longstanding partner agreements with EOH after an anonymous whistle-blower filed a complaint with the US Securities & Exchange Commission (SEC) about alleged malfeasance involving a South African department of defence software procurement deal.
The whistle-blower lodged the complaint with the SEC in November 2018 in terms of the US’s tough anti-graft legislation, the Foreign Corrupt Practices Act.
In its statement, issued on the JSE’s stock exchange news service in response to TechCentral’s report, EOH said law firm ENSafrica, which it appointed recently, continues to look at all large, historical licensing contracts concluded by the group’s public-sector business.
Microsoft has still not officially provided it with reasons for the notice of termination, which was served 10 days ago, EOH said. “This matter is now sub judice.”
It added than ENSafrica is reviewing about eight to 10 historical contracts a week for any evidence of graft and unethical business practices.
“ENS continue to give us regular updates and we are committed to swift and appropriate action. Shareholders will be advised of any further developments,” the group said in the statement.
EOH’s shares were trading down 13% at 12.30pm in Johannesburg on Monday at R17 apiece. — (c) 2019 NewsCentral Media