EOH has had to instil new culture following years of looting, CE tells Zondo

EOH has had to instil new culture following years of looting, CE tells Zondo

JOHANNESBURG - EOH chief executive Stephen van Coller on Monday said the company has had to instil a new culture following years of corruption by what he calls rogue and greedy elements.

At the state capture commission, Van Coller painted a picture of a listed company that was riddled with tender irregularities, inflated licence sales, collusion and inappropriate donations before he was appointed.

  • READ MORE: Zondo hears details of irregular tenders, inflated license sales at EOH

He said the company had opened itself up to the commission, regulators and law enforcement agencies including the Special Investigating Unit.

Van Coller said as soon as he was appointed, he called in forensics investigators after finding that invoices of large government contracts didn’t make sense and he didn’t want the company to be blacklisted.

“There were two Microsoft licencing deals with the Department of Defence and there was one SAP licencing deal with the Department of Water Affairs - in both cases there was over-invoicing and underdelivering.”

Van Coller said the company fired its CFO, appointed a new board and adopted new policies.

“The anti-bribery and corruption policy especially sections on introducers or middlemen.”

He said the company had nearly 300 legal entities and each one ran its own procurement, but it's now centralised to safeguard the 10,000 jobs that were put on the line by a few corrupt and greedy individuals.

WATCH: State capture inquiry, 23 November 2020

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