The Particular Investigating Unit (SIU) and the Division of Water and Sanitation (DWS) have signed a settlement settlement with IT firm EOH. By way of the settlement, EOH has agreed to pay again R191.8-million, together with curiosity, over 36 months.
The settlement additionally stipulates that an upfront fee of R65.7-million should be made by EOH by 30 November 2022, with the primary instalment of R3.4-million due on 1 January 2023.
The settlement pertains to an SIU probe into the procurement, contracting and implementation of data expertise in respect of the EOH/DWS contracts below Presidential Proclamation No. R33 of 2021.
The probe discovered that EOH had unduly benefited from its contracts with the division.
On 5 August 2021, the federal government introduced the SIU’s proclamation for an investigation into the procurement of, or contracting and implementation of, 4 IT contracts that have been awarded between 2012 and 2017 by the division to EOH Mthombo (an entirely owned subsidiary of EOH), to the worth of R474-million.
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In response to the SIU, it was additionally contacted by EOH to tell the unit of doable fraud and corruption involving staff of its subsidiary, EOH Mthombo, and third events who allegedly colluded with Division of Water and Sanitation officers in contracts that EOH had concluded with the division.
EOH has been below scrutiny since 2017, when amaBhungane first raised questions concerning the firm’s political connections.
The SIU has made it clear that this settlement doesn’t exempt EOH from paying any additional quantities because of the division that will but be uncovered by the continued investigation.
Neither does the settlement waive the SIU’s rights to carry any motion or software earlier than the excessive courtroom or Particular Tribunal to get well any additional quantities of cash which can be revealed by the SIU or every other organ of the State.
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A joint assertion by the SIU and DWS reads: “The settlement is just not an exoneration of any individual from being held criminally accountable for no matter felony conduct investigation of the SIU into the conduct of EOH Mthombo and/or DWS and/or every other third occasion.”
The assertion additionally underlined that the settlement settlement was a continuation of the implementation of the SIU investigation outcomes and consequence administration to get well property and monetary losses suffered by State establishments and to stop additional losses.
In 2018, EOH’s new leadership, below chief government Stephen van Coller, promised to scrub issues up and employed forensic consultants at regulation agency ENSafrica to research actions at EOH Mthombo between 2014 and 2017.
An announcement by EOH says the brand new board and administration have, over the previous 4 years, taken steps which illustrate how critically they take the investigation.
“…. the EOH Group has transparently and publicly carried out strong actions to determine wrongdoings and has supplied in depth cooperation with regulation enforcement and regulatory businesses together with the SIU.
“Upon studying in February 2019 of sure transgressions of a number of earlier staff and board members of EOH between 2015 and 2017, the brand new board and administration of EOH instructed impartial regulation agency ENSafrica to considerably prolong the scope of the forensic investigation into the suspected wrongdoing overlaying a interval from 2012 to 2018.”
EOH submitted eight part 34 studies to the SIU between Could 2019 and June 2020, and made detailed submissions to the Nationwide Treasury and Sita (State Data Expertise Company), in addition to the Monetary Intelligence Centre.
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On 31 Could 2019, EOH reported wrongdoing to the Nationwide Treasury and proposed to compensate the State for recognized irregularities within the Division of Water and Sanitation contract.
As a part of this course of, EOH contacted the SIU in July 2020 to debate what the evaluation uncovered, what work was executed for worth, and to debate compensation for facets of the contract the place no worth was derived in respect of the division’s contract.
The SIU, the division and EOH then reached settlement on an quantity that every one events believed to be honest and equitable.
EOH chief Van Coller mentioned the corporate’s new management remained dedicated to doing enterprise ethically in addition to being an excellent company citizen. DM