EOH Holdings is in “advanced negotiations” with the departure of water affairs & sanitation over compensation related to four dodgy contracts awarded to the IT services company worth R474-million.
EOH Holdings CEO Stephen van Coller said late on Friday that he is confident that the IT services group will not be blacklisted by government.
EOH Holdings could soon be blacklisted by from doing business with government – if the State IT Agency (Sita) gets its way. This follows the public sector corruption scandals uncovered at the group in recent years.
Exclusive | EOH Holdings is suing its co-founder and former CEO, Asher Bohbot, and its former chief financial officer, John King, for R1.7-billion in damages each. It is also pursuing several other former executives.
Podcast | For the past two years, Stephen van Coller has been holding down one of the toughest CEO jobs in South Africa – attempting to lead IT services group EOH Holdings out of dire straits.
Suspicious payments flowed to a company owned by Johannesburg mayor Geoff Makhubo and to the ANC in the months directly before and after EOH landed major contracts with the city.
Former EOH executive Jehan Mackay has taken centre stage in corruption allegations involving payments to senior ANC figures, including Zizi Kodwa and a former personal assistant to ex-President Jacob Zuma.
Since their peak in 2016, shares in EOH – which describes itself as Africa’s largest technology service provider – have plunged by an eye-watering 97%. They have lost more than 50% in the value since 1 January alone.
In a pre-closing update ahead of the publication of the group’s interim financial results for six months to end-January 2020, EOH signalled that it’s slowly turning the corner, operationally at least.
Shares in the JSE-listed technology group plunged to levels last seen more than 10 years ago on Wednesday as investors continued to fret about its prospects.