EOH chair Asher Bohbot resigns to comply with King 4
The group also announced the resignations of nonexecutive directors Rob Sporen and Tshilidzi Marwala
EOH chair Asher Bohbot is stepping down to comply with King 4 rules, which state that a former CEO should not head a company’s board for three years after resigning.
Bohbot, EOH’s founder and CEO for 19 years until July 2017, was appointed its nonexecutive chair in March 2018, replacing Sandile Zungu.
The information technology group also announced on Wednesday morning the resignations of nonexecutive directors Rob Sporen and Tshilidzi Marwala for reasons “also aligned with King 4’s stipulation on board member independence”.
Furthermore, human resources executive Tebogo Maenetja is leaving EOH at the end of April to assume a senior executive position with a large international business. Maenetja's appointment as human resources executive was made in the same statement in March 2018 that announced Bohbot would be rejoining the group as chair.
EOH said a process to appoint new board members is under way and shareholders will be advised of such appointments in due course.
“I have confidence in EOH’s management and believe that the new strategy, which is in advanced stages of implementation, will be beneficial to all our stakeholders,” Bohbot said in the statement.
The resignations of the three board members and human resources executive on Wednesday morning follow a crash in EOH’s share price after Microsoft refused to allow the group to continue selling its products after a whistle-blower handed information involving an SA government contract to the US Securities and Exchange Commission.
EOH issued a statement on Tuesday saying “the Microsoft investigation forms part of EOH’s larger internally initiated investigation into all public-sector contracts over the last five years, with the support of ENSafrica”.
“This process involves obtaining information from whistle-blowers and the corroboration of internal facts as part of a thorough and detailed forensic investigation of these public sector contracts.”
EOH said that the media could have access to the contracts and evidence from whistle-blowers. “EOH cannot respond each time the media publishes information on the back of their information, but shareholders will be provided with responses to relevant media coverage and advised of developments as appropriate, subject to legal advice.”