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Eskom's misconduct allegations already concluded, says EOH

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EOH's share price has dropped almost 60% over the past 12 months.
EOH's share price has dropped almost 60% over the past 12 months.

IT services company EOH has rubbished misconduct allegations levelled against it by Eskom this week.

The power utility posted a statement on SENS saying it reported the reportable irregularities in the interim financial statements for the six-month period ended 30 September 2018. EOH was cited two times in the Eskom statement.

EOH allegations in the Eskom statement read: "There were allegations that the former CPO (J Pillay) and other senior officials in procurement were involved in acts of misconduct involving EOH Holdings.

"A member of the board and audit and risk committee (J Sebulela) did not declare a conflict of interest and did not recuse himself on deliberations involving the supplier (EOH)."

Eskom's statement led to the EOH share price falling about 15.7% to R26.35.

This morning, EOH published its own statement, saying with reference to the SENS announcement issued by Eskom on 28 January, EOH wishes to clarify the following:

"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.

"EOH is currently engaged with the JSE and Eskom on Eskom's SENS disclosure."

At the time of publishing, the EOH share price was R26.40. EOH's share price has dropped almost 60% over the past 12 months.

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