Cape Town – EOH said the IT services it provided the South African Social Security Agency (SASSA) for eight years were based on merit, dispelling an article that suggested its directors could trump the Guptas regarding allegations of state capture.
EOH was responding to a Business Report story this week that questioned EOH’s role as SASSA’s IT service provider.
The report suggested that EOH’s directors, father and son Danny and Jehan Mackay, “might dethrone” the Guptas “as South Africa’s most notorious alleged practitioners of state capture”.
It challenged EOH to open their books “for a full audit, disclose all government contracts and disclose your delivery to government against payment of these contracts”.
EOH said the article is a “regurgitation of a previous article”, which was published by Amabhungane and Daily Maverick on April 13.
“The Business Report article has relied on the original article for its information, with no new information provided,” it said in a statement on Tuesday.
Amabhungane reported that a “shadowy middleman who connects Social Development Minister Bathabile Dlamini to grants contractor Cash Paymaster Services (CPS) has been living in a R65m mansion courtesy of two directors" from JSE-listed group EOH.
“EOH, meanwhile, has scored at least R300m in social development IT contracts and is positioning itself to become a central player in a future social grants distribution system.”
The Constitutional Court this year extended SASSA’s illegal contract with Net1’s CPS for a year, after which a new service provider must be found. The contract services 17 million beneficiaries of social grants.
While SASSA has been looking to partner the SA Post Office and commercial banks, the resignation this week of SASSA CEO Thokozani Magwaza has raised concerns of interference by Dlamini.
Amabhungane reported that while Treasury seeks the Post office Option (as did Magwaza), Dlamini “has pushed for a proprietary system, which would appear to favour private technology firms like EOH”.
Responding to the latest story, EOH said the “Business Report article has ignored EOH’s repudiation response" to the original article.
“As with the original article, this latest article is also based on unfounded insinuations and allegations relating to EOH.”
EOH said it “is proud of its track record and quality, depth of skills and expertise it provides” SASSA.
“All services provided to SASSA were awarded on merit, after having undergone open and transparent tender processes, in compliance with the Public Finance Management Act.
“EOH is considering all options available for recourse and corrective action in respect of any harm caused to EOH and its stakeholders.”
EOH's founder and chief executive Asher Bohbot left the firm at the end of June after 19 years, Fin24 reported recently.
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