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ICT firm EOH has reached a settlement with the Special Investigating Unit (SIU) to pay back over R100 million to the Department of Water Affairs and Sanitation (DWS) in connection with an irregular contract.
The technology company announced on Friday it had agreed to make an initial upfront payment of around R65 million, which relates to duplicated software licences which will be refunded.
The remainder of an amount of R112 million is to be paid over a period of 36 months, commencing in January 2023. The company said the amount was seen by all parties involved in the matter to be fair and equitable.
In August 2021, the SIU revealed that it would launch a probe into tenders worth R474 million issued by the DWS.
A number of questionable business deals with government departments, including the conduct of its past executives, were detailed in the Judicial Commission of Inquiry into State Capture.
On 31 May 2019, EOH reported the wrongdoing to National Treasury and proposed to compensate the state for identified irregularities regarding the DWS contract.
The CEO of EOH, Stephen van Coller, said the new EOH leadership was committed to "doing business ethically as well as being a good corporate citizen."
In afternoon trade on Friday, EOH's shares were down 1.3% to R3.80.
Click here for details of EOH's shares and other info.
