EOH to approach police after probe finds evidence of theft, bribery

Stephen van Coller, the CEO of ICT group EOH [JSE:EOH], said on Tuesday that an internal probe had revealed that "about eight" people had been involved in a "suspicious transaction" totalling R1.2bn between 2014 and 2017.

Coller was giving an update on the findings on the first part of a forensic probe by law firm ENSafrica into possible fraudulent transactions involving the group.

The past five months had been "fairly devastating", he said, saying he would "never wish it on my worst enemies".

The probe flagged evidence of bribery, corruption, theft and overpaying enterprise development suppliers, he said, adding the ICT group would be lodging criminal complaints with police.  It would also consider civil claims against those implicated.  

EOH shares were trading at R19.32 a share at 09:30 on the JSE , down 7.38% on the day.

Coller said in a webcast that most of the suspicious transactions involved EOH Mthombo, a subsidiary of EOH.

Evidence pointed to about eight people being involved in wrongdoing. He did not name names. He said some 84% of the R1.2bn in suspicious transactions involved transactions to about 20 suppliers.

In mid-February, when the investigation kicked off in earnest, a number of EOH staff implicated in wrongdoing had resigned or been suspended from the ICT group.

Coller said on Tuesday the next phase of the investigation will include probing the R1.2bn in suspicious transactions in more detail. He said this amount may also include some legitimate work.

He thanked whistleblowers who have come forward with allegations of wrongdoing at the company.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.30
(+0.22)
ZAR/GBP
21.35
(+0.44)
ZAR/EUR
19.30
(+0.31)
ZAR/AUD
11.57
(+0.33)
ZAR/JPY
0.16
(+0.27)
Gold
1917.10
(-0.21)
Silver
24.79
(-0.57)
Platinum
887.00
(+0.40)
Brent Crude
42.06
(-3.35)
Palladium
2388.00
(+0.15)
All Share
55017.71
(-0.59)
Top 40
50535.74
(-0.73)
Financial 15
10244.57
(+1.05)
Industrial 25
74236.66
(-0.46)
Resource 10
53613.44
(-1.53)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
26% - 45 votes
No, I did not.
48% - 82 votes
My landlord refused
25% - 43 votes
Vote