An internal investigation by IT service management company EOH has revealed serious governance failings, tender irregularities, unsubstantiated payments, and other unethical business dealings at the company, says a Mail & Guardian report. The probe by ENSafrica – which identified R1.2bn in suspicious contracts – was initiated by the board and the company’s chief executive Stephen van Coller in February to look into the company’s historical licensing contracts with the government. The report found a range of maladministration issues including, among others, EOH employees conspiring with two preferred suppliers to facilitate inflated software licence sales; systemic use of connected middle-men recognised and used as introducers and sales agents; enterprise development subcontractors used on projects and payments made to such suppliers, where it is ‘questionable whether bona fide work was done by the said suppliers’, and inappropriate gifting, sponsorships and donations. Prior to the release of the report, the company announced the resignation of three long serving directors – Zunaid Mayet, Rob Godlonton and Pumeza Bam. Although the report does not implicate the three executive members it, however, says ‘the employment relationship with EOH has been terminated with individuals who have been directly implicated in the identified wrongdoing’.