The JSE. Photo: Simphiwe Mbokazi.
JOHANNESBURG - Technology firm EOH’s share price recovered on Friday, following a volatile week for the stock after recent reports the Hawks were investigating businessman Keith Keating, a director of three businesses owned by the JSE-listed company.

The company’s share price gained 5.6 percent to R47.52.

The company’s share price plummeted more than 45 percent on Thursday following a Monday raid by the Independent Police Investigative Directorate (Ipid) on the homes of former acting national police commissioner Lieutenant-General Khomotso Phahlane and Keating, an SA Police Service contractor, who was recently fingered in an alleged tender scandal.

According to The Mercury, Since 2010, Keating’s company, Forensic Data Analysts (FDA), has been the sole supplier to the SAPS - through IT company Sita - of a firearm permit system and software, as well as forensic equipment worth around R5.7 billion.

Keating is accused of having paid for vehicles for Phahlane, his wife Brigadier Ntombizodwa Phahlane, and his sister. On Monday, the Hawks and Ipid obtained search-and-seizure warrants for several properties linked to the Phahlanes and Keating from which documents, computer equipment, cellphones, iPads and a Ford Ranger were seized.

However, Keating has dismissed what he called “wild allegations”, saying: “Let the criminal justice system take its course and then we can all decide.”

On Thursday, the EOH share price plummeted more than 45 percent, continuing on the downward trajectory of Wednesday, when its value fell by more than 11 percent in trading. The company, which has been implicated in questionable deals, has lost 72 percent of its value since January, and also saw the resignation of founding chief executive Asher Bohbot this year.

The EOH issue comes on the back of the scandal that brought global retailer Steinhoff International to its knees, losing hundreds of billions of rand in share price and claiming the scalp of chief executive Markus Jooste, who admitted making “big mistakes that have now caused financial loss to many innocent people”.