Arms manufacturer Denel’s former Land Systems CEO Stephan Burger is expected to testify at the Commission of Inquiry into State Capture in Johannesburg on Tuesday.
— State Capture Commission (@StateCaptureCom) November 23, 2020
On Monday, the commission heard from the CEO of EOH Holdings, Stephen van Coller. He said that when he joined the company in 2018 he found that the government had paid it R700 million for work that was not done.
Van Coller also said government contracts were secured through collusion, inappropriate gifts and donations to political parties.
“People were stealing money from EOH to make political donations. There are instances where you can see those discussions about confidential information in the tender in some cases EOH employers writing the content of the tender to exclude other bidders to make us more likely to win the tender.”
Van Coller also said irregular tenders and a lack of proper financial controls led to the company incurring debt of about R3.7 billion.
“There were two Microsoft licensing deals with Department of Defense and another SAP deal with the Department of Water Affairs, in both cases, there were over-invoicing and under-delivering so in the other one we charged for 20 000 licenses and we only delivered 15 000. We also charged above the normal rate.”