Red flags over EOH’s water deal
Investigation by task team throws up interesting anomalies in tender — then ceases operations
A leaked forensic report has raised questions over EOH’s dealings with the government — at a time when the company has yet to regain the lustre that once made it a market darling. The information technology company’s share price has lost more than 60% over the past year after allegations of corruption involving an SA Social Security Agency (Sassa) contract surfaced. This was followed by more allegations of corruption involving a company it acquired, Forensic Data Analysts (FDA), run by controversial businessman Keith Keating. The financial performance of EOH has also weighed on its share price after the 23% slump in earnings the company reported for its half-year to end-January. These developments prompted a return of founder Asher Bohbot. The company cleared itself of wrongdoing involving the Sassa contract and reversed the transaction with FDA. EOH also has plans to split its business into two parts, with EOH’s CEO Zunaid Mayet opting to step down from that post and lead Nextec, a...
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