EOH has announced that Asher Bohbot – founder, non-executive chairman, and CEO for 19 years – is resigning from the company’s board.
“Mr. Bohbot will, on an advisory basis, assist the group until 31 July 2019 in the implementation of the strategy shared with the market recently,” said EOH.
It added that the movie is in accordance with King IV – that a former CEO should not serve as chairman of the board until a three-year cooling off period has been observed.
“I have confidence in EOH’s management and believe that the new strategy, which is in advanced stages of implementation, will be beneficial to all our stakeholders,” said Bohbot.
Rob Sporen, founding member of EOH and non-executive director, will also resign from the board after 20 years of service, said EOH.
Additionally, Tshilidzi Marwala, a non-executive director, and Tebogo Maenetja, HR executive director, will resign from the board effective 28 February and 31 March respectively.
The resignations follow a reprot that an EOH subsidiary was involved in a corrupt R120-million contract with the South African Department of Defence.
This resulted in Microsoft terminating its partnership agreement with EOH – which sent its share price plunging last week.
EOH CEO Stephen Coller has encouraged anyone with evidence of unethical business practices within the company to come forward so that the problems can be rooted out.