City of Cape Town evaluating EOH contracts — company responds

The City of Cape Town is evaluating contracts with companies implicated in the Zondo Commission of Inquiry’s State Capture Report, including IT giant EOH.
News24 reported that mayor Geordin Hill-Lewis instructed the City’s legal department to write letters to EOH, Bidvest Prestige, Ernst & Young, PWC, Nedbank, and Pegasus Advisory.
These companies have been given an ultimatum — come clean on what you have done wrong, or risk losing your contracts with the City of Cape Town.
The City of Cape Town asked for clarification about the malfeasance and corruption they were involved in.
Hill-Lewis said the City of Cape Town has a responsibility to guard its reputation and send a message to corrupt companies that they will face the consequences.
Responding to the action launched by the Hill-Lewis, EOH group chief risk officer, Fatima Newman, said the company had been playing open cards about its checkered past.
“As part of our standard practice with all our stakeholders — and because of the well-documented history of EOH and the issues it has experienced — we provide stakeholders with regular updates when requested,” she said.
Newman added that the updates relate to the findings from the ENS forensic investigation, the remediation efforts, and the commentary relating to the adverse media around EOH.
She added that there is nothing new to report and that all the findings from the ENS forensic investigation have been disclosed to the appropriate authorities.
EOH has also implemented all the needed remediation.
“We have provided this same feedback to the City of Cape Town in response to their request,” Newman said.
EOH further informed the City of Cape Town that those implicated in alleged irregularities are no longer working at the company.
“This is again in line with EOH’s much-publicised communications in this regard,” she said.
In terms of the contracts with the City of Cape Town, EOH said it is effectively delivering against its service level agreements related to these.
EOH believes that given the extent to which EOH has made voluntary disclosures, its contracts with the City of Cape Town should not be at risk.
The voluntary disclosures were made to all relevant law enforcement agencies and the Commission on State Capture.
“EOH awaits the formal outcome of the clarification process undertaken by the City of Cape Town,” Newman said.