IT services company EOH is ready to begin a new chapter. Well, almost. It still has a few pages to turn, including the debt situation auditors flagged with the twice-delayed release of its annual results this week. While many companies with September year-ends are releasing their numbers, EOH’s date back to July.
First appeared in Daily Maverick 168
Granted, apart from Covid-19, the company has had a lot on its plate due to irregularities, fraudulent contracts, premature recognition of revenue and a number of other factors that resulted in a crisis under its previous management – and a big restatement of its accounts for the past few years.
Former investment banker Stephen van Coller has been leading a clean-up since he took over as CEO in 2018, including a review of its financial reporting process. Last year, a forensic report by law firm ENSafrica uncovered suspicious transactions worth R1.2-billion. EOH was hit with a R7.5-million fine by the JSE in July – with R2.5-million suspended for the next five years.
It all culminated in Van Coller’s two-hour appearance before the Zondo commission late last month, where he outlined the misdeeds and detailed how he had prioritised clean governance. ENS also…