John King, the former CFO of EOH Holdings who was being sued by the company for damages of 1.7 billion rand, has died.
King passed away on October 4. It is understood that he died of pneumonia. He was 61 years old.
EOH expressed its condolences to King’s family on his passing.
TechCentral reported in June that EOH was suing King and other former directors, including former CEO Asher Bohbot, for billions of rand in damages for governance failures when they ran the company.
EOH sued King and Bohbot for R 1.7 billion each. He filed civil suits in Johannesburg High Court for damages inflicted on the group due to its alleged failure to deal effectively with governance violations and malpractices that decimated the price and valuation of the services group’s shares. IT and damaged your reputation.
Specifically, EOH sued Bohbot and King on charges of late payment, breach of fiduciary duties and breach of contract.
EOH also filed documents against the former head of the public sector, Jehan Mackay, for 1.5 billion rand. EOH is suing Mackay for breach of fiduciary duties, as well as for allegedly making payments to third parties for failing to perform any work. Mackay’s name featured prominently in the evidence presented by the ENSafrica law firm at Zondo’s Commission of Inquiry into State Capture.
It also issued a subpoena against Ebrahim Laher, who served as a director of EOH International, in the amount of R1.6 billion. You face allegations of negligence and mismanagement.
The civil lawsuits arose from investigative work carried out by ENSafrica into corruption in the group’s public sector contracts. The civil litigation began with the mandate of the EOH board of directors.
Read: Blacklisting EOH will now punish the wrong people
EOH instructed ENSafrica in 2019 to expand its investigation after TechCentral broke the news in February of that year that Microsoft had terminated its relationship with the local IT services group over an unreliable software license agreement between the IT unit. EOH EOH Mthombo and the South African Department of Defense.
The news sent EOH’s share price plummeting from which it has yet to recover.
Subsequently, ENSafrica’s investigation uncovered evidence of widespread wrongdoing in the group.
EOH said in June that it was pursuing its former top executives through civil proceedings to try to recover as much of the money as possible that was “diverted from the business and paid to business development partners and third parties who did not perform any services.”
The legal action is in addition to the possible criminal proceedings against the persons involved.
Duncan McLeod is an editor at TechCentral, where this article was first published. here.
© 2021 NewsCentral Media