EOH shocked by its inclusion in Eskom statement

By Robert Laing for Business Day 

Techology group EOH issued a Sens announcement on Wednesday objecting to a statement that Eskom issued on Tuesday, which sent its share crashing as much as 16% to an intra-day low of R26.35.

EOH was listed twice in 14 reportable irregularities flagged in Eskom’s interim results for the six months to end-September, a Sens statement the state-owned enterprise (SOE) issued showed.

The list included that there were allegations that Eskom’s former chief procurement officer, Jay Pillay, and other senior officials in procurement were involved in acts of misconduct involving EOH.

The second mention of EOH regarded the resignation of George Sebulela in October 2018.

“A member of the board and audit and risk committee, Sebulela did not declare a conflict of interest and did not recuse himself on deliberations involving the supplier (EOH),” Eskom’s statement said.

“EOH is currently engaged with the JSE and Eskom on Eskom’s Sens disclosure,” the technology group said in Wednesday’s statement. “The two allegations mentioned in the announcement are matters that have been fully investigated and the matters concluded last year. EOH was found not to be implicated in either allegation.”

Other suppliers mentioned in Eskom’s list of reportable irregularities who gained contracts without following correct procedures included Bizz Tracers, Huarong Asset Financing, Cliffe Dekker Hofmeyr, McKinsey and Trillian.

Former Absa and MTN executive Stephen van Coller recently issued a statement following his first 100 days as EOH’s CEO in which he said “specific legacy issues have affected the company’s value”.

Van Coller announced a new structure, which among other things, will improve the group’s accountability.

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