Top EOH executives resign

Technology services company EOH has announced that a number of its board members have resigned, including Pumeza Bam, Zunaid Mayet, and Rob Godlonton.

Bam resigned from the EOH Holdings Board and various other EOH subsidiary boards and trusts with effect from 12 July 2019. He served as executive director for seven years and non-executive director for two years.

Executive director and Nextec CEO Zunaid Mayet also resigned from his position as CEO and from the EOH board with effect from the same date. Mayet has been at EOH for 10 years and a member of the board for the last two years.

“To ensure a smooth transition, Zunaid will assist with the handover of Nextec by 31 October 2019,” EOH said. “He thereafter intends embarking on a new entrepreneurial venture.”

Executive director and CEO of EOH’s ICT business, Rob Godlonton also resigned from the company with effect from 12 July 2019.

“Rob has been at EOH for over 11 years and has been leading the EOH ICT business in South Africa with energy and dedication,” EOH said.

“To ensure a smooth transition, Rob will assist with the handover of the ICT business by 31 October 2019.”

EOH Group CEO Stephen van Coller and financial director Megan Pydigadu will assume a care-taking leadership role for the ICT and Nextec businesses on an interim basis, the company said.

EOH said earlier in July that legal firm ENSafrica had concluded its investigation into a number of public sector contracts, amid allegations of corruption and poor governance and compliance.

In February van Coller wrote an open letter to stakeholders after Microsoft terminated partner agreement with subsidiary, EOH Mthombo. In the letter van Coller promised to clean up the business.

The group recently completed a strategic review of the business and presented a strategic plan to the board which was adopted in late March 2019. It subsequently announced the conclusion of a deal that will see it dispose of a 70% shareholding of enterprise software group, Construction Computer Software (CCS) for R444.4 million.

And in April, EOH reported a headline loss of R1.56 billion for the six months ended January 2019, compared to headline earnings of R458.4 million before.

Revenue, EOH said, remained stable at R8.4 billion (2018: R8.35 billion) and operating costs remain flat, after the removal of once-off items.

“The period under review marks the dawn of a new era for EOH. The appointment of key executive team members, including a new group CEO and CFO, a revitalised strategic intent and transparent approach have greatly assisted the group in navigating its way through the challenges to date and to set the direction for the future,” van Coller said.

He said that a review identified the need to refocus the businesses, including the identification and ultimate elevation of the IP businesses.

“Meaningful progress has been made on implementing this as well as towards addressing legacy governance issues, future-proofing the business and aligning strategic and financial performance,” he said.

In a note on the JSE’s news distribution service on Wednesday (3 July), EOH said: ENSafrica has concluded the investigation commissioned by EOH into public sector contracts and has submitted a forensic report and its recommendations to the board of directors of EOH.

“The board has assessed the findings of the ENSafrica report and is engaging with the stakeholders concerned where appropriate. Relevant findings and associated actions will be made public on or about 16 July 2019, or as required.”

Shares in EOH declined more than 5% in afternoon trade on JSE.

Read: EOH investigation findings to be made public soon

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Top EOH executives resign