Business Day reported that the possible blacklisting is “punishment for a tender fraud scandal that surfaced three years ago and ensnared the IT company in the state capture project”. EOH has “made representations to the State Information Technology Agency (Sita) in mitigation of sentence for its past misconduct”, Business Day said. Sita’s executive caretaker and administrative authority, Luvuyo Keyise, said, “the government’s hard-line against corruption should be backed up by reform”.

This report follows an announcement by EOH that it is suing former executives for a combined R6.4 billion for not dealing effectively with corruption at the company. These executives include founder and former CEO Asher Bohbot, former CFO John King, former EOH Mthombo executive Jehan Mackay, and former EOH International CEO Ebrahim Laher. These lawsuits follow revelations of widespread corruption, BEE fronting, and paying kickbacks to win lucrative tenders.

Under EOH CEO Stephen van Coller, the company committed to transparent cooperation with the relevant authorities, including the SIU, Hawks, and the Enquiry into State Capture. Van Coller even testified at the Zondo Commission and played open cards about the history of corruption at EOH. The EOH CEO was widely praised for his fight against corruption, but it had unintended consequences. EOH became the poster child for corporate corruption in South Africa.

Steven Nathan, the founder of 10X Investments, said Van Coller’s actions keep reminding people about corruption at EOH, which has a negative impact on clients and staff. “There are definitely consequences and some downside,” Nathan said. EOH’s potential blacklisting is an example of what Nathan was warning about. If the government wants to punish a company for misconduct, EOH is the obvious target. MyBroadband asked EOH about the government blacklisting, but the company did not respond at the time of publication.