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Number of subcontractors paid for work not done: Van Coller

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The CEO of EOH Holdings Limited  Stephen van Coller says he found tender irregularities and no proper financial controls which led to employees easily stealing money when he joined the company in 2018.

Some workers of EOH colluded with government officials to bypass the tender process and inflate prices.

Coller says irregular tendering and lack of proper financial controls led to the company incur debt worth about R3,7 billion. He says when he joined EOH there were no proper financial controls that one would expect from a listed entity, adding that there were a number of subcontractors paid for work not done.

The findings of its Microsoft contract found serious governance and controls, collusion, tender irregularities, inappropriate gifting and donations.

They also found that the Departments of Defence and Water Affairs were over invoiced while the work was under-delivered.

EOH’s CEO testifies at the State Capture Inquiry: 

Lack of proper procurement and governance led to the company incurring massive debt. And it used cash to acquire assets that were not generating income.

“They invested R900 million in Zimbabwe and the cash would not come to and we spent R700 million largely on the international acquisition.”

The company says it has engaged with SAPS, Special Investigation Unit and the Financial Intelligence Centre, Sars, National Treasury and have done an affidavit for criminal prosecution.

 

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