South Africa\u2019s EOH Holdings said the potential loss of partner agreements with Microsoft’s South African unit within the next 30 days won\u2019t have a material impact.<\/p>\n
While EOH is working to understand Microsoft\u2019s concerns, the agreements are not ‘financially material’ for the company, Debbie Millar, a spokeswoman for EOH, said in a phone interview on Tuesday.<\/p>\n
EOH will still be able to supply Microsoft products through re-sellers if the matter isn\u2019t resolved, she said.<\/p>\n
EOH underwent a restructuring and hired a new CEO last year to try shake off governance concerns after the company was linked to government contracts that were being questioned in 2017.<\/p>\n
Founder Asher Bohbot returned as chairman while Stephen van Coller was named CEO in July.<\/p>\n
Last month, state-owned power utility Eskom published allegations that its former chief procurement officer and other senior officials were involved in acts of misconduct that involved EOH.<\/p>\n
The technology company said later the same week that the two allegations Eskom disclosed had been fully investigated, that EOH wasn\u2019t implicated and that the matters were concluded last year.<\/p>\n
EOH has hired a legal firm to carry out an internal investigation, according to Van Coller, who is due to meet with Microsoft later on Tuesday.<\/p>\n
The company\u2019s share price plunged as much as 34% and was 28% lower at R19.20 as of 14:10 in Johannesburg – its lowest since August 2011.<\/p>\n