EOH Holdings has released the results of an investigation by ENSafrica into corruption at the company, stating that “evidence of serious governance failings and wrongdoing” was discovered at the company.
The probe was requested by EOH CEO Stephen van Coller earlier this year, following reports of irregularities in the supply of Microsoft software to the South African government.
ENSafrica discovered evidence of tender irregularities, EOH employees conspiring with preferred suppliers to inflate software licence sales, and inappropriate sponsorships and donations.
Payments of R1.2 billion to 78 supplier entities are being investigated by the company to determine whether appropriate work was done for services rendered.
EOH said it has terminated the employment of individuals directly involved in irregular activities. This announcement follows less than one day after the simultaneous resignation of three top EOH executives.
“The employment relationship with EOH has been terminated with individuals who have been directly implicated in the identified wrongdoing,” EOH stated.
The company added that it has reported the implicated parties to the Hawks and instructed ENSafrica to initiate criminal charges against the perpetrators to recover losses.
“In light of these findings, the Group is documenting and developing a comprehensive remediation plan,” EOH said. “A number of remediation measures have already been implemented and others will follow in due course.”