SIU recovers more than R40m from EOH for overcharging Defence Dept on contract

The SIU has uncovered procurement irregularities and overpricing arising from a R250 million Microsoft licenses contract signed between EOH and the department in 2016 and 2017.

SIU head Advocate Andy Mothibi. Picture: @RSASIU/Twitter

JOHANNESBURG - The Special Investigating Unit (SIU) said that it had recovered R40 million from tech giant EOH which was due to the Department of Defence.

The agency has uncovered procurement irregularities and overpricing arising from a R250 million Microsoft licences contract signed between EOH and the department in 2016 and 2017.

The SIU said that EOH acknowledged that it overcharged the department for the Microsoft licences and agreed to sign an acknowledgment of debt amounting to over R41 million, which will be paid back over three years with interest.

Civil proceedings will also be instituted in the special tribunal to cancel the irregular contract and determine any further monies that can be recovered by the Department of Defence.

SIU spokesperson Kaizer Kganyago: "EOH, after being confronted, has acknowledged the said overpricing."

The SIU further said that Department fo Defence officials who were involved and were implicated in the procurement irregularities would be referred to the department for disciplinary action.

Evidence pointing to criminal action would be referred to the National Prosecuting Authority (NPA) for further attention.

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