Information technology company EOH said on Friday it has reached an agreement with the Special Investigating Unit (SIU) and the department of water & sanitation (DWS) to pay back R177m it irregularly received from its dealings with the department.
This is from four IT contracts EOH's wholly-owned subsidiary EOH Mthombo signed with the DWS between 2012 and 2017.
EOH said its new board and management had over the last four years conducted an investigation into allegations of corruption and irregularities .
“Upon learning, in February 2019, of certain transgressions of several previous employees and board members of EOH between 2015 and 2017, the new board and management of EOH instructed law firm ENSafrica to significantly extend the scope of the forensic investigation into the suspected wrongdoing covering a period from 2012 to 2018.”
EOH said in May 2019 it had reported the wrongdoing to the National Treasury and proposed to compensate the state for identified irregularities regarding the DWS contracts.
“As part of this process, and after having concluded the full detailed analysis, EOH proactively made contact with the SIU in July 2020 to discuss first, what the analysis uncovered, second what work was done for value and third to discuss compensation for aspects of the contract where no value was derived in respect of the DWS contract.”
Last year, there was a government announcement regarding the SIU’s proclamation for an investigation focusing on four IT contracts awarded between 2012 and 2017 by the department to EOH Mthombo.
EOH said it had engaged the SIU to agree on an amount for undue benefit EOH Mthombo received from these contracts.
It was agreed there would be an initial upfront payment of R65m relating to duplicated software licences.
The remainder of an amount of R112m would be paid over a period of 36 months starting in January next year.
“The EOH board and executive leadership express their gratitude to the SIU and DWS for their professional engagement and in working with EOH to reach a settlement agreement,” EOH group CEO Stephen van Coller said.
The SIU said in a statement the settlement does not exonerate EOH from paying any further amounts due to DWS that may be subsequently uncovered by the ongoing investigation.
“Furthermore, the agreement is not an exoneration of any person from being held criminally liable for whatever criminal conduct that may be uncovered by the ongoing investigation of the SIU into the conduct of EOH Mthombo and/or DWS and/or any other third party,” the SIU said.
TimesLIVE
EOH agrees to pay back millions from contracts with water and sanitation department
Image: Freddy Mavunda
Information technology company EOH said on Friday it has reached an agreement with the Special Investigating Unit (SIU) and the department of water & sanitation (DWS) to pay back R177m it irregularly received from its dealings with the department.
This is from four IT contracts EOH's wholly-owned subsidiary EOH Mthombo signed with the DWS between 2012 and 2017.
EOH said its new board and management had over the last four years conducted an investigation into allegations of corruption and irregularities .
“Upon learning, in February 2019, of certain transgressions of several previous employees and board members of EOH between 2015 and 2017, the new board and management of EOH instructed law firm ENSafrica to significantly extend the scope of the forensic investigation into the suspected wrongdoing covering a period from 2012 to 2018.”
EOH said in May 2019 it had reported the wrongdoing to the National Treasury and proposed to compensate the state for identified irregularities regarding the DWS contracts.
“As part of this process, and after having concluded the full detailed analysis, EOH proactively made contact with the SIU in July 2020 to discuss first, what the analysis uncovered, second what work was done for value and third to discuss compensation for aspects of the contract where no value was derived in respect of the DWS contract.”
Last year, there was a government announcement regarding the SIU’s proclamation for an investigation focusing on four IT contracts awarded between 2012 and 2017 by the department to EOH Mthombo.
EOH said it had engaged the SIU to agree on an amount for undue benefit EOH Mthombo received from these contracts.
It was agreed there would be an initial upfront payment of R65m relating to duplicated software licences.
The remainder of an amount of R112m would be paid over a period of 36 months starting in January next year.
“The EOH board and executive leadership express their gratitude to the SIU and DWS for their professional engagement and in working with EOH to reach a settlement agreement,” EOH group CEO Stephen van Coller said.
The SIU said in a statement the settlement does not exonerate EOH from paying any further amounts due to DWS that may be subsequently uncovered by the ongoing investigation.
“Furthermore, the agreement is not an exoneration of any person from being held criminally liable for whatever criminal conduct that may be uncovered by the ongoing investigation of the SIU into the conduct of EOH Mthombo and/or DWS and/or any other third party,” the SIU said.
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