Former EOH CEO Asher Bohbot
Photo by: Creamer Media
Information technology services company EOH on June 29 confirmed that it has filed civil claims and is suing several former EOH executives including former CEO Asher Bohbot, former CFO John King, former public sector head Jehan Mackay and former EOH International head Ebrahim Laher for about R6.4-billion in damages.
“When the new EOH board mandated ENSafrica to conduct a comprehensive investigation into the large public sector contracts, they committed to be transparent on the process, the outcomes, cooperate with authorities, prosecute where there was wrongdoing and implement the correct and appropriate governance frameworks.
“It was through that process that a number of governance failings, including unsubstantiated payments, tender irregularities and unethical business practices were uncovered. The new board throughout ensured transparent cooperation with the relevant authorities including the Special Investigating Unit, the Hawks and the enquiry into State capture,” the company said in a statement.
EOH states that the losses incurred as a direct and indirect consequence of the alleged wrongdoings, were substantial, including revenue lost owing to reputational damage, as well as fines, settlements and the cost of the ENSafrica investigation.
“Further, significant man-hours were spent by the various internal teams dedicated to the investigation, as well as dealing with the consequences of the wrongdoings. This effort was critical to saving the jobs of as many EOH people as possible as the new board sought to avoid blacklisting by EOH’s partners and customers.
“The incredible support and response we have received from our stakeholders has resulted in the winning of multiyear contracts and is a strong indicator that we have followed the correct strategy.
“It has been no easy feat getting to this point. The new EOH leadership team is immensely proud of everyone who has been involved in this process of saving the jobs of many people and ensuring EOH’s continuing support for our customers in their critical digitisation journeys,” said EOH Group CEO Stephen van Coller.
“As a result of these efforts, EOH remains a leader in the information and communications technology sector in South Africa.
"EOH employees have shown immense loyalty and grit as we navigated the past two years and the group can now focus on the building of EOH 2.0 into a unique business with innovative solutions driven by incredibly skilled and passionate people,” he added.