EOH agrees on settlement with SIU and DWS

November 2022 News

In an email recently sent out to clients, EOH’s CEO, Stephen van Coller, announced the achievement of a milestone in terms of reaching a settlement agreement with the Special Investigating Unit (SIU) and the Department of Water and Sanitation (DWS). This was regarding the SIU’s investigation focusing on the procurement of, or contracting and implementation of, four IT contracts that were awarded by the DWS to EOH Mthombo, to the value of R474 million.

The SIU provided EOH with its investigation findings in March 2022, after which EOH provided evidence of the substantial work that was done for the DWS. This resulted in the negotiation of an amount, which is deemed to be just, fair, and equitable, to be reimbursed by EOH to the DWS.

The settlement comprises an initial upfront payment of R65 million relating to duplicated software licences which will be refunded; and the remainder of an amount of R112 million to be paid over a period of 36 months, commencing in January 2023.

“On behalf of the Board and the Executive I’d like to offer my deep gratitude to the SIU and DWS for working together with EOH to reach a settlement agreement,” Van Coller said. “We have now finally concluded the legacy contract issues related to these DWS contracts, which were identified as suspicious during the ENSafrica forensic investigation.

“As an organisation, EOH remains firmly committed to continuing to do business ethically, as well as being a good corporate citizen, as we continue to focus on achieving excellent service delivery and value for your business.”

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