EOH has published an announcement informing shareholders of developments in the media concerning the termination of its partnership with Microsoft.
These developments include a report that EOH was involved in a corrupt R120-million contract with the South African Department of Defence.
After learning of the allegations, Microsoft reportedly hired Seattle law firm Perkins Coie to look into the situation – which advised the company to end its agreement with EOH.
EOH was given notice by Microsoft on 12 February regarding the termination of Microsoft’s Channel Partner Agreement with its subsidiary EOH Mthombo.
EOH said that its law firm, ENS, is now examining all major contracts with the government to determine whether there is any substance to the allegations laid against it.
EOH added that it would take swift action as it is given updates on the situation by ENS.
“This matter is now sub judice. ENS continue to give us regular updates and we are committed to swift and appropriate action,” EOH said.
EOH CEO Stephen Coller encouraged anyone with evidence of unethical business practices within the company to come forward so that the problems can be rooted out.