EOH to pay back over R40 million earned unduly from the Department of Defence
EOH to pay back over R40 million earned unduly from the Department of Defence.
EOH agrees to pay back the money over the cryptic Microsoft deal. The SIU investigations into the R250 million Microsoft Software Licences procurement contracts awarded by the Department of Defence (DoD) to EOH has uncovered irregularities relating to the procurement process and also overpricing of Microsoft Licenses amounting to more than R40m
EOH is going to pay up R41.7-million for overcharging for Microsoft licenses by its EOH Mthombo subsidiary, the Special Investigating Unit (SIU) said in a series of tweets on Wednesday evening. It said the contract was “irregular” and found that EOH overcharged the defense department between 2016 and 2017. EOH has signed an acknowledgment of debt but is “not exonerated from paying further amounts due to the DoD that may subsequently be uncovered”.
“The DoD officials involved and implicated in these irregularities have been identified and referrals of evidence will be made to the DoD to institute disciplinary action,” the SIU said, without naming the officials. “The investigation has also uncovered evidence pointing to criminal action. This evidence, as required by the SIU Act, will be referred to the National Prosecuting Authority and to the Directorate for Priority Crimes Investigation for further attention.”
Microsoft canceled its longstanding partner agreements with EOH in early 2019 after an anonymous whistle-blower filed a complaint about malfeasance in the DoD contract to the SEC in late 2018.
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Independent Writer
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