EOH told investors on Tuesday to be cautious when trading its shares while it looks into its past dealings with the state. The stock has been battered over concerns about the company’s dealings with the government. The share was trading 15.8% lower at R14.71 on Tuesday morning, the worst level in about eight years, following a report by TechCentral that Microsoft’s decision to cut ties with the company is linked to a tip-off about a contract with a government department. The Johannesburg-based news website said the US IT giant’s move was related to an anonymous complaint to the US Securities and Exchange Commission (SEC) about a R120m software deal between EOH Mthombo and the department of defence. EOH, which is headed by Stephen van Coller, has contracted ENSafrica to look into its bids for state projects over the past five years, including that deal. The company said shareholders will be provided with responses to media coverage “and advised of developments as appropriate, subject...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now