The Special Investigating Unit (SIU) will investigate four IT contracts to the value of R474 million awarded to EOH by the Department of Water and Sanitation (DWS).
The SIU said the contracts linked to corruption and maladministration were awarded by the DWS to EOH between 2012 and 2017.
This investigation comes after President Cyril Ramaphosa signed a proclamation authorising the probe.
The investigation will determine whether the procurement and payments made in relation to the IT contracts were done in a proper manner.
Apart from potentially uncovering corruption and maladministration at the department, the probe will also serve to recover financial losses suffered by the state.
The investigation will cover transactions that took place between 1 January 2012 and 30 July 2021.
Transactions that took place outside this period, but connected with persons, entities or contracts being investigated, will also form part of the SIU investigation.
The SIU will subpoena bank statements and cellphone records, search and seize evidence, and interrogate witnesses under oath to hold those responsible for financial losses to account.
The SIU said EOH provided it with information about fraud and corruption involving former employees of its subsidiary, EOH Mthombo.
EOH also provided details about third parties who allegedly colluded with officials of DWS concerning contracts that EOH had concluded with DWS.
Water and Sanitation Minister Lindiwe Sisulu has welcomed the investigations into allegations of corruption and maladministration at her department.
“Our resolve is to root out fraud and corruption which has over the years denied our people access to clean water and provision of decent sanitation,” she said.
Sisulu said the war against fraud and corruption is a collective responsibility and “can only be won if we put all hands on deck”.
The Minister has called on all institutions to cooperate with all enforcement agencies, including the SIU, on various investigations affecting the department.
MyBroadband asked EOH for comment about the investigation, but the company did not respond by the time of publication.