Johannesburg – The Special Investigating Unit (SIU) together with the Department of Water and Sanitation (DWS) have signed a settlement agreement with EOH, a JSE-listed IT company.
According to the agreement, EOH will pay back more than R178 million, plus interest, it irregularly received from its dealings with the department between 2012 and 2017.
“In terms of the agreement, EOH has agreed to pay back R191 883 000, inclusive of interest, over a period of 36 months,” the SIU said in a communique released Friday.
“According to the payment schedule, an upfront payment of R65 792 258.85 should be paid by no later than 30 November 2022 by EOH
“While the first installment of R3.4 million is to be paid on 1 January 2023, and thereafter on the first business day of each succeeding calendar month until the debt is fully settled.”
The settlement emanates from the SIU being authorised to investigate the procurement of, contracting, and implementation of Information Technology in respect of the EOH/DWS contracts under Presidential Proclamation No. R33 of 2021.
The SIU’s investigations found that EOH unduly benefitted from its contracts with DWS.
The matters came to the attention of SIU during its investigation into the affairs of DWS, which were directed by proclamation R27 of 2018, as amended by Proclamation R44 of 2019.
The SIU said it was also contacted by EOH about possible fraud and corruption involving employees of its subsidiary, EOH Mthombo, and third parties who allegedly colluded with officials of DWS concerning contracts.
However, the SIU said it made it “clear that the settlement does not exonerate EOH from paying any further amounts due to DWS that may be subsequently uncovered by the ongoing investigation”.
