Department of Labour PPP agreement clarification

Johannesburg, 15 Feb 2013
Read time 1min 40sec

In November 2012, EOH acquired Siemens Information Services (SIS). One of SIS's major customers is the Department of Labour (DOL). This relationship is governed in terms of a Public Private Partnership (PPP) concluded in 2002. When EOH acquired SIS, it essentially stepped into the "shoes of SIS".

The PPP agreement provides for a transitional termination period during which period the service provider hands over the various services, contracts and assets to the department, ensuring a smooth transition and no disruption to services. The specific services to be provided during this transitional period are governed by the Termination Support Services Agreement catered for in the PPP agreement.

The Honourable Minister of Labour, Mildred Oliphant, has informed us that the internal processes governing the provision of Termination Support Services by EOH is under review.

We understand that when EOH changed the name of SIS to EOH Managed Services, it created the perception that a new service provider (EOH) had been appointed, which resulted in the internal procurement processes of the department being questioned. It appears to be a simple case of a 'mistaken identity'.

In the two months during which EOH has been involved with the Department of Labour, we have delivered excellent services and received repeated praise for such from the department. The introduction of systems and skills by EOH has made a major positive impact on critical processes in the department. EOH is continuing to deliver services to the department under a perfectly scrutinised valid agreement. We are engaged with the department to resolve this misunderstanding.

As the leader in software systems in SA, EOH will continue to add significant value to the improvement of service delivery by government, as we have demonstrated during the two months which we have been involved with the Department of Labour.


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EOH Kedibone Sehume (082) 881 6099
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