Home Business EOH to pay again over R40m earned from dodgy defence contracts -...

EOH to pay again over R40m earned from dodgy defence contracts – SIU

  • Tech agency EOH has agreed to pay again over R40 million it earned unduly from defence contracts.
  • In accordance with the SIU, this will likely be paid again over three years.
  • The SIU says that the acknowledgement of debt doesn’t exonerate the corporate from paying any additional quantities.

Listed tech agency EOH has agreed to pay again over R40 million from contracts awarded by the Division of Defence that have been discovered to be irregular.

The Particular Investigating Unit, which has been probing procurement contracts awarded by the DoD to EOH value some R250 million, stated in a press release on Wednesday that it had uncovered irregularities referring to the procurement course of, in addition to overpricing of Microsoft Licences, amounting to greater than R40 million.

“EOH was confronted and acknowledged the stated overpricing. EOH agreed to signal an Acknowledgement of Debt (AoD) and has since signed the AoD with the SIU to the worth of R41 676 493.92, which is to be paid again to the DoD,” spokesperson Kaizer Kganyago stated.

The SIU added that the corporate had agreed to pay again the cash over a interval of three years with curiosity.

Nevertheless, the SIU emphasised that the signing or acceptance of the AoD by EOH wouldn’t exonerate the corporate from paying any additional quantities because of the DoD that is likely to be uncovered by its investigations in future. 

The SIU says it is going to institute civil proceedings within the Particular Tribunal to cancel the contract and decide any additional monetary losses to the DoD, and get better any monies due. 

“The DoD officers concerned and implicated in these irregularities have been recognized, and referrals of proof will likely be made to DoD to institute disciplinary motion.”

The investigation additionally uncovered proof pointing to prison motion, Kganyago stated, including that this proof could be referred to the Nationwide Prosecuting Authority and the Directorate for Precedence Crimes Investigation (the Hawks).

The SIU stated that on 12 July 2019, it was directed to analyze procurement and contracting for Microsoft Software program Licences by the DoD, in addition to associated funds to EOH.

“The allegations that the SIU is investigating are that DoD procured Microsoft Software program licenses through an middleman being EOH with none legitimate procurement course of having been adopted,” it stated. 

It was additionally alleged that DoD paid an inflated value to the middleman for the licenses, which may have been bought for roughly one-third of the worth from Microsoft instantly.

Moreover, the SIU is investigating an allegation that EOH was contractually obligated to supply 20 035 Microsoft licenses to DoD however solely offered 15 108, Kganyago stated.

Fin24 lately reported that in keeping with EOH CEO Stephen van Coller, the corporate has lastly closed all “all of the eight problematic public sector contracts that received it into hassle.”

An extra request for remark was despatched to EOH. Ought to a response be obtained, this text will likely be up to date. 

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