EOH to pay back millions to Department of Water and Sanitation

The Johannesburg Stock Exchange (JSE)-listed IT company EOH is in hot water again as it has been ordered to repay over R178 million, plus interest, that it received irregularly from its dealings with the Department of Water and Sanitation (DWS) between 2012 and 2017.

A joint statement by the SIU, the department and EOH stated that EOH has agreed to pay back R191 883 000, inclusive of interest, over a period of 36 months.

According to the payment schedule, an upfront payment of R65 792 258.85 should be paid by no later than November 30, 2022 by EOH, while the first instalment of R3.4m is to be paid on January 1, 2023 and thereafter on the first business day of each succeeding calendar month until the debt is fully settled.

The settlement emanates from the SIU being authorised to investigate the procurement of, contracting for, and implementation of information technology in respect of the EOH/DWS contracts under Presidential Proclamation No R33 of 2021. The SIU’s investigations found that EOH unduly benefited from its contracts with DWS,” read the statement.

According to the statement, the issues were brought to the SIU’s attention during its investigation into DWS’s affairs, which was directed by Proclamation R27 of 2018, as amended by Proclamation R44 of 2019.

“The SIU was also contacted by EOH with the purpose of informing the unit of possible fraud and corruption involving employees of its subsidiary, EOH Mthombo, and third parties who allegedly colluded with officials of DWS in relation to contracts that EOH had concluded with DWS.

The SIU has made it clear that the settlement does not exonerate EOH from paying any further amounts due to DWS that may be subsequently uncovered by the ongoing investigation.

“Neither does the agreement waive the SIU’s rights to bring any action or application before the high court or Special Tribunal to recover any further amounts of money that may be due to it or DWS, which may be revealed by the ongoing investigation by the SIU or any other organ of the state,” the statement said.

The statement highlighted that the agreement is not an exoneration of any person from being held criminally liable for whatever criminal conduct may be uncovered by the ongoing investigation of the SIU into the conduct of EOH Mthombo, DWS, and/or any other third party.

“The SIU is empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 to institute civil action in the Special Tribunal or the high court to correct any wrongdoing it uncovers in its investigation. Where there is evidence pointing to criminal conduct, the SIU refers the evidence to the National Prosecuting Authority for further action,” said the statement.

The Star

• EOH rights its troubled house after corruption blow for irregular dealings with the Department of Water and Sanitation

• Tech firm EOH to repay R191m to Dept of Water and Sanitation