Microsoft acts against EOH

Microsoft terminated longstanding partner agreements with JSE-listed technology services group EOH after an anonymous whistleblower filed a complaint about alleged malfeasance involving a South African department of defence software procurement deal with the US Securities & Exchange Commission (SEC).

The whistleblower, through a firm of attorneys, wrote to Seattle, Washington-headquartered Microsoft’s board of directors, asking it to investigate the matter and take appropriate action. The allegations centre on a contract, worth R120 million, awarded by the department of defence in 2016 to the EOH subsidiary, EOH Mthombo.

Following receipt of the letter, a Microsoft board committee hired Seattle law firm Perkins Coei to probe the matter. This led to an instruction by Microsoft to its SA subsidiary to terminate its agreements with EOH.

This article first appeared on TechCentral