Asher Bohbot, founder, non-executive chairman and CEO of EOH for 19 years, is set to step down from the board of the company at the end of February.
The group said in a statement on Wednesday, that in accordance with King IV, a former CEO should not serve as chairman of the board until a three-year cooling off period has been observed.
It said that Bohbot will, on an advisory basis, assist the Group until the end of July 2019 in the implementation of the strategy shared with the market recently.
“I have confidence in EOH’s management and believe that the new strategy, which is in advanced stages of implementation, will be beneficial to all our stakeholders,” Bohbot said.
Last week, EOH CEO Stephen van Coller moved to allay stakeholder jitters as the company’s shares plunged after Microsoft ended its association with IT firm.
Van Coller wrote an open letter after the company said the potential loss of the contract would hurt profit by about R10 million.
EOH last year hired Van Coller, a former executive at wireless carrier MTN Group and lender Absa Group, to try and shake off reputational concerns after the company was linked to questionable government contracts.
But last month, state-owned power utility Eskom Holdings SOC Ltd. published allegations that its former chief procurement officer and other senior officials were involved in acts of misconduct that involved EOH, Bloomberg reported.
The technology company said later the same week that both of Eskom’s allegations have been fully investigated and that EOH wasn’t implicated in any wrongdoing.
EOH has hired a legal firm to carry out an internal investigation, according to van Coller.
In order to comply with King IV’s stipulation on board member independence, EOH said in its statement on Thursday that Rob Sporen, founding member of EOH and non-executive director, will also be resigning from the board after 20 years of service to the group, effective 28 February 2019.
Tshilidzi Marwala, non-executive director, will be resigning from the board effective 28 February 2019 – and is also aligned with King IV’s stipulation on board member independence.
Tebogo Maenetja, HR executive director, will be resigning from the board effective 31 March 2019, EOH said.
“Ms Maenetja will leave EOH at the end of April 2019 in order to assume a senior executive position with a large international business. We thank Ms Maenetja for her valued contribution in managing the HR function and wish her all the best in her new position.”