We bought 2 corrupt businesses back in 2012 - Stephen van Coller (CEO at EOH)
We bought two corrupt businesses back in 2012… The founders got inserted into EOH in different roles… They were covering for each other.Stephen Van Coller, CEO - EOH
EOH has blacklisted 50 of its enterprise development partners implicated in a “fake work and overbilling” fraud totalling almost R1 billion.
The company – South Africa’s large IT service provider – has seen its net asset value plummet by 70% in the past year, partly due to the fraud.
Listen to the interview in the audio below (and scroll down for more quotes from it).
There are some common directors across them [the 50 blacklisted companies] … There were invoices with one-line explanations… In some cases, the companies admitted they didn’t do any work for us or overcharged us…Stephen Van Coller, CEO - EOH
It happened over four years… Unless you have proper controls and accounting systems, you can hide it… It was only through a whistle-blower that we knew where to look… Fortunately, it was in one place – in the public sector vertical, perpetrated by 11 individuals…Stephen Van Coller, CEO - EOH
We have 270 businesses. In only one unit was corruption taking place… We continue to deliver good work to our customers…Stephen Van Coller, CEO - EOH
If you look at the acquisition strategy… it grew incredibly fast…. buying 30 companies per year. There’s no way you can integrate 30 companies and make sure you have control over payments… it started fraying at the edges… got out of control…Stephen Van Coller, CEO - EOH
If we didn’t make the five mistakes, we wouldn’t have any debt today.Stephen Van Coller, CEO - EOH
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This article first appeared on 702 : We bought 2 corrupt businesses back in 2012 - Stephen van Coller (CEO at EOH)
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