EOH Holdings is in “superior negotiations” with the division of water affairs & sanitation over compensation associated to 4 dodgy contracts awarded to the IT companies firm value R474-million.
These legacy contracts are a part of the suspicious public sector contracts uncovered by EOH and regulation agency ENSafrica into corruption within the JSE-listed group’s dealings with authorities companies and departments below the previous administration crew led, a few of whom are being pursued civilly by the group for billions of rand in damages.
On Thursday, the Particular Investigating Unit said it would lodge an investigation into allegations of corruption and maladministration relating to the water & sanitation tenders.
The investigation may also serve to get well potential monetary losses suffered by the state, the SIU mentioned. This comes after President Cyril Ramaphosa signed a proclamation authorising the probe final week. The contracts had been awarded between 2012 and 2017.
EOH mentioned on Friday that the the SIU actions “are in response to wrongdoing involving former EOH staff, which was dropped at the eye of the SIU by EOH”.
“To ensure that EOH to compensate the division of water & sanitation (through the SIU) for such wrongdoing, it was obligatory for the SIU to be mandated to analyze the contracts. This then gave rise to a presidential proclamation, which has now been revealed. EOH has not solely cooperated absolutely with the SIU to convey this matter to a conclusion however has proactively sought to reimburse the division for wrongdoing involving former staff recognized within the EOH forensic investigation,” EOH mentioned.
“From inception of the ENSafrica forensic investigation in February 2019, EOH has transparently and proactively reported wrongdoing to the authorities. Moreover, previous to partaking in settlement negotiations with the SIU, on 31 Might 2019 EOH reported the wrongdoing to nationwide treasury and proposed to compensate the state for recognized irregularities relating to the division of defence and water & sanitation contracts,” mentioned EOH chief threat officer Fatima Newman in a press release.
“EOH subsequently entered into an acknowledgement of debt (AoD) with the SIU on the finish of September 2020 almost about the defence contract. EOH commenced month-to-month funds by way of the AoD from 5 October 2020,” it mentioned. This info has been disclosed beforehand to the market.
“EOH has taken motion to achieve an identical settlement with the SIU relating to the water & sanitation contracts. On this regard, negotiations with the SIU on the water & sanitation contracts are superior, and it’s anticipated that an settlement on compensation can be concluded within the close to future.”
Duncan McLeod is Editor of TechCentral, on which this text was first revealed here.
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