EOH sues former CEO Asher Bohbot for R1.7bn

29 Jun 2021

EOH is suing its former CEO and co-founder Asher Bohbot and former chief financial officer John King for R1.7bn each, TechCentral reported. They are being sued for damages inflicted on the group due to their alleged failure to deal effectively with governance breaches and malfeasance that have decimated the IT services group's share price and valuation.

EOH sues former CEO Asher Bohbot for R1.7bn

"EOH is going after Bohbot and King on charges of delinquency, breach of fiduciary duties and breach of contract," TechCentral said.

EOH is also suing its former public sector head Jehan Mackay for a breach of fiduciary duties as well as for allegedly making payments to third parties for no work done. Mackay is being sued for R1.5bn.

Ebrahim Laher is also being sued by EOH for R1.5bn. Laher is the company's former head of international and is being sued for claims of negligence and mismanagement.

"The civil suits are the next step flowing from the investigative work done by ENSafrica into corruption in the group’s public sector contracts, The civil litigation has been brought with the mandate of EOH’s board of directors," TechCentral said in its report.

EOH's current CEO Stephen van Coller is now "actively weeding out corrupt elements at EOH to restore the company’s reputation," according to another report by MyBroadband. Van Coller's actions include testifying at the Zondo Commission.

"Van Coller told the commission EOH paid millions to ANC politicians in donations and made irregular payments in exchange for lucrative tenders," MyBroadband said.

He revealed that EOH paid R865m to subcontractors where there is no evidence of work done.