DURBAN – EOH Holdings' share price ended the week in negative territory, with the price down around 12 percent, after opening the week trading at R32.05 a share on the JSE.
The shares were further plunged into the red by Eskom, after the power utility published allegations that its former chief procurement officer, Jay Pillay, and “other senior officials” in the procurement team were involved in acts of misconduct involving EOH, the listed technology group.
The share price slid by more than 15 percent after the allegations to R26.76 on Tuesday. However, it recovered on Friday as it was up by more than 4percent to close at R27.81 at the end of the day.
Eskom published a statement last Monday, stating that a member of the board and audit and risk committee, George Sebulela, did not declare a conflict of interest, and did not recuse himself on deliberations involving EOH, which was a supplier to Eskom.
However, EOH said the allegations were not new.
The group responded on Wednesday, saying the matter had been investigated and that it had been cleared of misconduct.
“The two allegations mentioned in the announcement are matters that have been fully investigated and the matters concluded last year.
"EOH was found not to be implicated in either allegation,” the group said.
In the past 12 months the group’s share price has come down by around 55percent, as it was trading at R62.40 on February 2, 2018.
Last year wasn't a good one for the company, as it reported a loss of R100.98 million for the year to end July.
The group said the political uncertainty, squeeze on public sector funding, delays in sign-offs on projects and the postponement of the awarding of contracts were among the reasons for the group to report a loss, with unfavourable media coverage adding salt to the wound.
However, positive developments saw the group splitting its businesses into two units to improve its corporate governance, with former chief executive Zunaid Mayet assuming the role of chief executive of Nextec, and Rob Godlonton becoming chief executive of EOH.
The group also appointed a new chief executive in Stephen van Coller.
In July, the group secured a R1 billion equity injection from Lebashe Investment Group as part of its amended BEE transaction.