corrupt elements at EOH<\/strong><\/a> and restore the company\u2019s reputation, which includes airing the company\u2019s dirty laundry in public.<\/p>\nHis testimony at the Zondo Commission was once again direct and transparent, where he gave details about various corrupt deals which EOH was involved in.<\/p>\n
These deals included two Microsoft licensing deals with the Department of Defence and one SAP licensing deal with the Department of Water Affairs.<\/p>\n
\u201cIn both cases, there was over-invoicing and under-delivering of licenses,\u201d Van Coller said.<\/p>\n
In one of the Microsoft licensing deals, EOH charged for 20,000 licenses, but they only delivered 15,000. In addition, EOH charged above the normal rates.<\/p>\n
\u201cIf the Department of Defence had gone directly via SITA to Microsoft where they have a Master\u2019s Services Agreement, they would have got a much better rate,\u201d he said.<\/p>\n
The EOH CEO also discussed tender irregularities that were linked to inappropriate gifting, sponsorships, and donations.<\/p>\n
There were instances where EOH employers wrote the content of the tender to exclude other bidders and to help it to win the tender.<\/p>\n
\u201cIn most cases, from what I can see, we would win the tender almost at any cost. So, our costings and what we put in the tender documents did not really make a difference,\u201d he said.<\/p>\n
Paying for no work done<\/h3>\n
Discussing potential kickbacks and other irregular payments, Van Coller said they investigated around R1.2 billion of suspicious payments.<\/p>\n
To date, they have uncovered around R700 million of payments where there was no work done and which were not related to any contracts.<\/p>\n
There was also around R160 million in payments for consulting services without any clear work being produced.<\/p>\n
\u201cIt is currently suspected that the potential irregular payments stand at approximately R865 million,\u201d he said.<\/p>\n
He added that some employees were simply stealing money from EOH for political donations, and in some cases, to enrich themselves.<\/p>\n
Van Coller said their investigation uncovered both undisguised donations and disguised donations.<\/p>\n
\u201cThe undisguised donations\u2026the issue is the size and the fact that it is to a single political party \u2013 the ANC,\u201d he said.<\/p>\n
EOH’s board have instructed attorneys to issue summons to recover damages from the alleged perpetrators.<\/p>\n
The company has also blacklisted 85 enterprise development partners following its corruption crackdown.<\/p>\n
Stephen van Coller Affidavit<\/h3>\n
EOH CEO Stephen van Coller\u2019s full affidavit is embedded below.<\/p>\n