JOHANNESBURG – Troubled EOH Holdings, which is internally investigating corruption involving government contracts, yesterday issued another cautionary statement to its shareholders that the IT firm expected to receive report findings by the end of this month.
In a SENS announcement, EOH said the probe into public sector contracts being undertaken by ENSafrica was on track to be concluded and delivered to the EOH board of directors, who would subsequently “take the necessary time to assess the detail thereof and where necessary engage with relevant stakeholders” by the end of June.
The corruption allegations have cost the firm its relationship with software giant Microsoft, which ended its partnership after an annoymous complaint to the US Securities and Exchange Commission about a R120 million software deal between EOH Mthombo and the Department of Defence.
EOH has contracted ENSafrica to look into its bids for state projects over the past five years, including that deal.
In January, the stock was dealt another blow when Eskom said its former chief procurement officer had been “involved in acts of misconduct involving EOH”.
EOH was yesterday trading 1.51 percent lower at R20.94 per share in intraday trade and closed at R20.91.