There has been no wrongdoing at EOH, the technology services company said in a statement on its website on Wednesday. It’s share price jumped by more than 4% shortly after markets opened.
EOH’s share price came under considerable pressure in July after an article in Business Report, a newspaper supplement and website in the Independent Group stable, repeated earlier allegations of corruption involving a contract with welfare agency Sassa.
The article was largely a rehash of allegations in a story written by amaBhungane and published by the Daily Maverick earlier this year. On 18 July, EOH issued a statement refuting the allegations in the Business Report article and in the original amaBhungane piece after its share price tumbled by more than 12% during intraday trading on that day.
On Wednesday, EOH said it has “engaged in a series of extensive interactions” with amaBhungane. The investigative journalism team has “subsequently confirmed that it has found no evidence of any wrongdoing on the part of EOH”, it said.
“amaBhungane has acknowledged that EOH has been responsive and transparent in the engagement with them,” the statement said. “EOH appreciates the time, effort, professionalism and integrity with which amaBhungane had engaged through this process, and is pleased that the matter has finally been closed and put to rest through an open and transparent process.”
EOH CEO Zunaid Mayet said in July that an independent legal firm had conducted a review and was “satisfied that the insinuations in these reports are false and untrue”.
“I am personally committed to ensuring sound corporate governance, and that we at EOH continue to conduct our business based on the highest ethical standards, while creating value for all our stakeholders,” Mayet said.
EOH’s share price was trading up by 4.7% at 9.42am on Wednesday at R101. The counter has shed 38.8% of its value in the past 12 months. — (c) 2017 NewsCentral Media