EOH — the troubled technology group working to regain its reputation in the wake of a corporate governance scandal — says it stands behind the DA’s decision to take legal action against previous management at the company, which is implicated in underhanded dealings with the government.
The DA’s Johannesburg caucus said on Tuesday it will lay criminal charges against the city’s mayor, Geoff Makhubo, and EOH.
This comes after Makhubo’s testimony at the inquiry into state capture in which he denied having an influence on awarding tenders between 2008 and 2018 during his tenure as ANC Johannesburg regional treasurer.
EOH is alleged to have donated millions to the city in exchange for tenders.
On Wednesday, EOH said it “welcomes this move and that of any other interested parties willing to support the efforts by the new EOH board to right the wrongs of the past”.
EOH’s management, under CEO Stephen van Coller, has been working hard to salvage the company’s reputation after allegations of malpractice and tender irregularities. It hired law firm ENSafrica to investigate the allegations. The probe found R1.2bn in suspicious transactions, mostly involving public-sector contracts, which ensnared the group in state capture.
Fatima Newman, chief risk officer at EOH, said, “The DA’s announcement to pursue legal action in this regard further legitimises the comprehensive steps EOH’s new board has taken over the past two years to create the EOH of today, which is an ethical organisation built on best-practice governance, risk and compliance principles.”
DA caucus leader Leah Knott alleged that Makhubo is guilty of bribery and corruption and should face jail time for betraying the city and its residents.
“I will be laying criminal charges against [Makhubo] and EOH for the corrupt SAP contract, which has cost the city hundreds of millions and will write to EOH to demand it returns all money paid to it by the city. I also call on the ANC in Gauteng to return the bribe money paid by EOH,” Knott said.
Makhubo has denied the allegations, saying donations did not guarantee tenders and the city’s dealings with donors were transparent.
EOH says it has initiated its own legal proceedings against implicated parties.
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