, first reported by TechCentral in February 2019, that enabled CEOI asked ENS to drop everything and examine this alone,” Van Coller said on a webcast on Tuesday. Within a short period of time, ENS reported serious irregularities and governance problems. “It has been devastating,” he said. “I wouldn’t wish the last five months on my worst enemy. To think that so few people can take from so many.”
The eight individuals who have been accused of corruption were not directors of EOH, but they were directors of subsidiaries and their middle management, says Van Coller. They have been dismissed and EOH has instructed ENS to prepare files for civil and criminal prosecution. The position of Chief Commercial Officer has also been created and filled to segregate duties between the finance function and the legal, risk and compliance functions, and an internal audit function has been created.
Karl Gevers, head of research at Benguela Global Fund Managers, observes that a R1.2-billion fraud on a market cap of R3.5-billion is not a small number.In the medium term, the question is to what level has the business been impacted? Has its ability to win contracts and pricing been impaired going forward?” Gevers asked.he loss of the Microsoft licence earlier in 2019 will impact the group negatively while potential liabilities or claims stemming from tender irregularities are also unknown.
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