About this case study: This narrative explains the nature of corrupt activities relating to high-profile cases, and is produced in the public interest. It relies on the final reports from the Judicial Commission of Inquiry into Allegations of State Capture, Corruption, and Fraud in the Public Sector, including Organs of State (the Zondo Commission), court documents, books, investigative journalism reporting, and other media articles, all in the public domain. The ISS has made all reasonable attempts to report the details accurately. Details for the cases in the Zondo Commission reports are provided up to December 2023. Further updates are in the ‘Recent Case Updates’ section below.

Story summary

Collusion between technology services company EOH and various government officials from 2001 resulted in tenders being awarded to the company in exchange for kickbacks to the African National Congress (ANC).

While the Zondo Commission into State Capture provided transparency in this matter, EOH itself played a key role in providing accountability, instituting its own inquiries, pursuing civil action against former directors and effecting anti-corruption reforms within the company.

EOH colluded with officials at the City of Johannesburg and national government departments to be awarded contracts collectively valued at more than R1.7bn. EOH made donations totalling R76m to the African National Congress (ANC), ostensibly as a means to secure contracts with the City; however, the specific benefits received by national government officials allegedly involved in colluding with EOH remain unclear.

EOH managed to secure large contracts with the South African Police Service (SAPS) and the National Prosecuting Authority (NPA), and proceeded to siphon off R45m in government funds to front companies. It is reported that EOH spent at least R865m on remunerating politically connected middlemen and subcontractors who provided no services but whose companies acted as front companies.

InsightISS Analysis

Our key insights on this case

Lessons for prevention and early intervention

Summary of companies involved

COMPANY NAME DESCRIPTION OF ROLE
EOH Holdings
  • Technology company
  • Allegedly colluded with officials at the City of Johannesburg to win contracts
EOH Mthombo
  • IT service management
  • Subsidiary of EOH Holdings
Tactical Software Systems Managed Services (TSSMS)
  • Technology company owned by Mackay
  • Presumably a subsidiary of TSS
  • Acquired by EOH and renamed EOH Afrika
Tactical Software Solutions (TSS)
  • Technology company owned by Mackay
  • Presumably the parent company of TSSMS
  • Not acquired by EOH
Molelwane Consulting
  • Consulting company owned by Makhubedu and directed by Makhubo
  • Reportedly acted as front company for payments
Mfundi Mobile Networks
  • Provided financial services and directed by Barry
  • Contracted by EOH Mthombo
  • Reportedly acted as front company for payments
Prime Molecular
  • B-BBEEE technology company directed by Makhubedu and Barry
  • Allegedly used to make payments to Molelwane
SAP
  • German software company
  • EOH earned contracts with the City of Johannesburg to provide licensing, support and upgrades for SAP software

Story 1City of Johannesburg

Summary
Timeline
Key Players

Patrick Makhubedu, Jehan Mackay and others from technology services company EOH allegedly colluded with politician Geoff Makhubo and the ANC to secure four contracts with the City valued at around R780m. In exchange, EOH made significant donations to the ANC, amounting to at least R75m.

Irregular contracts awarded to EOH by the City of Johannesburg

NAME IN CASE TRACKER TIMELINE CONTRACT NAME IN ZONDO REPORT VALUE EXPECTED DURATION OF CONTRACT
Contract 1 ‘ICT Security Services’
(Tender COJ A387)
R26m 2010 – 2012
Allegedly extended irregularly on several occasions.
Contract 2 ‘SAP Support Services’
(Tender COJ A472)
 
R250m
 
2012
Readvertised in 2015, but the tender was withdrawn and EOH’s contract was allegedly extended irregularly for R64m in 2016.
Contract 3 ‘Network Infrastructure and Security Services’ Quoted R106.1m but invoiced and paid R109.7m EOH submitted an unsolicited proposal on 16 April 2014 (the same day it made a R3m donation to the ANC).
Awarded the same year.
Contract 4 ‘SAP Upgrade’
(Tender COJ A647)
R404m 2016 – 2019
TOTAL R789.7m

EOH donations to ANC and payments to front companies

Year Alleged irregular payments made to ANC by EOH and others Alleged irregular payments made to ‘subcontractors’
2012 EOH R1.35m to Molelwane
2013 R2.15m
2014 16 April (same day unsolicited proposal for Contract 3 was sent): R3m
Aug-Oct: R2.17m
Aug: Mfundi R1.28m to Molelwane
Sept: EOH R670 000 to Molelwane
Sept: Prime Molecular R70 000 to Molelwane
2015 R1.7m to Kodwa/ANC
R656 000 in luxury accommodation for Kodwa
2016
  • May-August: R50m
  • June: R512 000 to Philisiwe Tau (Johannesburg mayor’s wife)
  • June: Computer equipment worth R204 000
  • June: Mfundi paid R418 000 rent for ANC and R40 000 in printing expenses
  • July: Mfundi R15.4m to ANC
  • 2 500 printed ANC t-shirts
  • Feb-April: Mfundi R250 000 to Molelwane
  • May: EOH R570 000 to Molelwane
  • May: Molelwane R200 000 to Makhubo’s personal account
  • July: EOH R16m to Mfundi R15.4m to ANC
  • By July 2016: EOH R15.6m → Mfundi
  • TOTAL The ANC and members received funds and material donations amounting to at least R75.5m. Molelwane and Mfundi received collectively at least R35.8m.
    EOH estimates that irregular payments to politically connected intermediaries and subcontractors who did not render services cost EOH around R865m.

    2009

    Tactical Software Systems Managed Services (TSSMS) was an information and communications technology (ICT) company owned by Jehan Mackay and his father. Patrick Makhubedu was employed at TSSMS in a senior role.

    October: TSSMS signed a ‘teaming agreement’ with Molelwane Consulting (Molelwane), owned by Makhubedu and his mother. The agreement stipulated that Makhubedu was the contact person at TSSMS and outlined a range of ‘vague and undefined’ services that Molelwane would provide to TSSMS.  These included ‘business advisory services, business development services, advisory service, and change management services’. TSSMS also received loans from Mfundi Mobile Networks (Mfundi), directed by Reno Neil Barry, a Tactical Software Solutions (TSS) financial manager. There is no other information on the nature of services Mfundi rendered to EOH. TSSMS also entered a ‘teaming agreement’ with EOH Mthombo, a subsidiary of EOH, and was paid large sums of money without rendering the services.

    2011

    EOH acquired TSSMS and renamed it EOH Afrika. EOH maintained the teaming agreement with Molelwane. Mackay and Makhubedu stayed with the company in senior roles. Makhubedu had a close personal relationship and was a partner in several private companies with Geoff Makhubo, an ANC politician who was treasurer of the ANC’s Greater Johannesburg Region at the time. During their friendship, EOH/TSSMS was awarded four irregular contracts with the City. Contract 1 was awarded in December 2010 for two years, but was irregularly extended several times. It was awarded to EOH Mthombo for ICT security services worth R26m.

    May: Makhubo was elected Member of the Mayoral Committee (MMC) for Finance for the Municipality of Johannesburg. He was a director and shareholder in Molelwane – as this represented a conflict of interest, he was supposed to resign from Molelwane but it emerged in 2018 that he never had. Contract 2 was awarded by the City to EOH for support services in relation to software provided to the City by technology company SAP, for the period 2012 to February 2016 for R250m. This contract was also irregularly extended several times.

    2012

    During 2012, EOH paid a total of R1.35m to Molelwane for services that were not rendered.

    2013

    November: EOH donated R151 000 to the ANC in Johannesburg.

    December: EOH donated a further R2m to the ANC in Johannesburg.

    2014

    January: Mfundi began receiving payments from EOH that would last until July 2016 and total R15.6m. ENSafrica could not find evidence of work that was done in exchange for these payments.

    April: EOH submitted an unsolicited proposal for the upgrading of the City’s network and security infrastructure for more than R106.1m (Contract 3). On the same day, EOH donated R3m to the ANC in Johannesburg. A letter acknowledging receipt of the donation was signed by Makhubo. The Zondo Commission noted that Makhubo, in his capacity as the MMC for Finance at the City, had ‘no business involving himself in procurement matters, particularly not unsolicited proposals from an entity from which he [would soon solicit] substantial donations for the ANC’.

    August: Makhubo wrote to Makhubedu asking for a donation of R582 000 to cover the costs of a regional ANC Youth League relaunch. Makhubedu forwarded the request to Rene Jonker, a divisional finance director at EOH, who made the payment the following day. A day later, Makhubo wrote to Mackay at EOH Mthombo soliciting another donation amounting to R6.2m. Two weeks after that, Makhubedu paid R20 500 to the Sandton Convention Centre on behalf of the ANC and sent proof of payment (POP) to Makhubo. Two days later, Mfundi paid the ANC R70 000 and Makhubo received the POP. The same day, Mfundi paid Molelwane R80 000. Prior to this, Molelwane only had R621 in its account. Barry listed Mfundi’s payments to the ANC and Molelwane as ‘costs of sales’. An amount corresponding to a ‘special invoice’ from June of R1.2m was paid out to Molelwane and also listed as ‘cost of sales’.

    September: Makhubedu instructed Barry to transfer R100 000 to Molelwane. Prior to this payment, Molelwane had an account balance of only R597. In relation to Contract 3, the City issued a payment order of around R109.7m to EOH, more than R3.5m over what was originally agreed on. Prime Molecular, a company directed by Makhubedu and Barry, paid Molelwane R70 000. Prior to this payment, Molelwane’s balance was R959. Soon after, Makhubedu emailed Makhubo a draft letter of award for input, which was framed as though it had been written by the City to EOH. A few days later, Makhubedu forwarded a request from the ANC’s Tshwane Regional Secretary to Mackay and Jonker for R300 000. A day later, Makhubo requested R4.3m from Makhubedu for an ANC regional conference. Makhubedu passed the request on to Mackay and Ebrahim Laher, the head of EOH International. EOH paid a further R570 000 to Molelwane.

    October: EOH paid R1.5m to the ANC. Makhubo received the POP from Makhubedu.

    2015

    November: Laher caught wind that Contract 2 – which had already been irregularly extended – was under consideration for advertisement. He was allegedly displeased because EOH had been assured it would be re-awarded the contract. He wrote to Asher Bohbot, the group Chief Executive Officer (CEO) of EOH, about the matter.

    Contract 4, for SAP upgrades, was irregularly awarded to EOH. In November, Nyiko Mutileni from EOH emailed Mackay to tell him that the City had issued a tender and he had alerted Makhubo.

    Just under two weeks later, Mutileni forwarded an email from the City to Mackay requesting donations for a promotional campaign being run by the City.

    2016

    February: Mfundi paid R200 000 to Molelwane. Prior to this payment, Molelwane’s account balance was R63.

    April: Mfundi paid a further R50 000 to Molelwane. Prior to this payment, Molelwane’s account balance was R617. Five days later, EOH was invoiced by Molelwane for R570 000. The ENSafrica financial forensics team later appointed to investigate corruption at EOH could not find evidence that any services had been rendered by Molelwane. Molelwane’s bank balance was R268 when EOH made the payment the following month. Makhubo transferred R200 000 from Molelwane to his personal bank account.

    May: Mutileni forwarded a sponsorship request to Laher for a project to take students to New York. The project was run by Philisiwe Tau, the wife of Johannesburg mayor at the time, Parks Tau. Two days later, Makhubo emailed Bohbot to ask for a donation of R50m towards the municipal election campaign for the upcoming local elections. The R50m was paid out in several tranches from May to August 2016.

    June: EOH Mthombo was informed that their bid for Contract 4, worth R404m, was successful. About three weeks later, EOH ordered more than R204 000 worth of computer equipment. Although the delivery note reflected that EOH was the recipient of the delivery, the delivery address was that of the ANC headquarters in Johannesburg and the contact person was ‘Geoff’. The payment of R512 000 for Philisiwe Tau’s project to take students to New York was approved.

    Mfundi paid ANC office rent totalling R418 000 and printing costs of R40 000 at Makhubo’s request.

    July: EOH paid Mfundi R16m. Mfundi used about R15.4m to make several payments towards the ANC in Johannesburg’s municipal election campaign expenses. The ENSafrica forensic investigation could not find evidence that services had been rendered to EOH by Mfundi – Mfundi served as a vehicle to channel money to the ANC. Ultimately, EOH estimated that at least R865m had been spent on remunerating politically connected middlemen and the ‘teaming agreement’ subcontractors who performed no material work – it was a way of moving public funds into corrupt individuals’ pockets.

    Mackay curried favour with Zizi Kodwa, an employee and spokesperson of the ANC, by making irregular payments to the ANC and giving Kodwa gifts. Mackay engaged Kodwa on several occasions regarding donations to the ANC totalling R2.7m and a supply of 2 500 printed t-shirts. Kodwa also benefited from luxury accommodation worth hundreds of thousands paid for by Mackay and EOH. Kodwa allegedly received more than R1.7m from EOH-related entities and Mackay.

    Mackay also engaged Kodwa on many occasions about procuring tenders. For example, he requested that Kodwa investigate a tender worth R360m with the Department of Home Affairs that EOH had lost.
    The Zondo Commission noted that it did not have enough time to properly investigate if there is evidence of impropriety on the part of Kodwa in relation to procurement processes, but that it was nonetheless unacceptable for Kodwa to find himself in a position where he owes a suspected criminal R1.7m. Kodwa was appointed Deputy Minister of State Security in August 2021.

    August: The ANC won the municipal elections to maintain control of the City.

    2017

    The first reports of corruption at EOH emerged in the public domain, including allegations of irregular contracts with the South African Social Security Agency (SASSA) in the Department of Social Development, SAPS and the Department of Water and Sanitation. At the time of writing, an investigation to verify allegations against EOH in relation to SASSA had not yet been conducted.

    2018

    Makhubo replaced Parks Tau as mayor of the City. He reportedly misled the media about having resigned as a director and shareholder of Molelwane in 2011. amaBhungane found that Molelwane was implicated in a scheme involving the siphoning of government funds amounting to R30m via contracts between Regiments Capital, a consulting firm implicated in many state capture cases, and the City. Makhubo reportedly received at least R7.1m in his personal account from Molelwane for the Regiments-City contracts. Stephan van Coller was appointed CEO of EOH in September.

    2019

    February: Van Coller appointed ENSafrica to investigate mismanagement and corruption at the company between 2014 and 2017. The investigation was led by Steven Powell, head of ENSafrica’s forensic department.

    2020

    July: The Johannesburg Stock Exchange fined EOH R7.5m, with a portion suspended, for errors in financial reporting from 2017 and 2018. EOH accepted the fine.

    November: The Zondo Commission began hearing the matter of EOH and the City. Van Coller was forthcoming with the Zondo Commission and other authorities such as SAPS, National Treasury and the South African Revenue Service (SARS). All evidence of irregular procurement processes and money flow was brought to the Commission’s attention by EOH itself.

    Van Coller testified that in addition to irregular government tenders, EOH had been plagued by poor governance, allowing a select few executives too much power. EOH had frequently inflated or created artificial software sales, and was known to pay subcontractors who had not rendered services. Another issue was the number of and speed with which EOH made acquisitions: it averaged 30 acquisitions per year between 2014 and 2019, which made controlling payments and contracts much harder. The ENSafrica investigation revealed that EOH engaged in around R1.2bn worth of irregular transactions, most of which pertained to public sector contracts.

    Van Coller publicly committed to reforming EOH and putting measures in place to prevent mismanagement and corruption from reoccurring. He removed all board members from the 2017/2018 board and reportedly instilled a culture of transparency and professionalism at EOH.

    patrick Makhubedu

    Patrick Makhubedu

    EOH sales director Alleged misconduct: Exploited his close relationship with Geoff Makhubo to secure irregularly awarded contracts for EOH with the City of Johannesburg in exchange for donations to the ANC. Makhubedu’s company, Molelwane, received at least R4.19m in payments from EOH or other front entities despite providing no substantive services.

    Status of accountability

    The Zondo Commission recommended that Makhubedu be investigated for potential corruption. Makhubedu resigned from his position at EOH in March 2019, one day before his scheduled interview with the law firm ENSafrica, which was investigating governance issues at EOH.

    Geoff Makhubo

    Geoff Makhubo

    City of Johannesburg MMC for Finance Alleged misconduct: Used his close relationship with Patrick Makhubedu to help EOH improperly secure contracts with the City, in exchange for donations to the ANC. Makhubo personally solicited many of these donations from EOH. He received at least R7.1m from Molelwane. He facilitated corrupt contracts between the City and the company Regiments Capital.

    Status of accountability

    He died in July 2021 due to complications from COVID-19.

    Jehan Mackay

    Jehan Mackay

    EOH Managing Director: Public Sector Alleged misconduct: Facilitated payments to Molelwane, a front company that did not render any services to EOH. Oversaw several other payments among front companies and to the ANC. Paid R1.7m to Zizi Kodwa to gain favour in the hopes of procuring contracts.

    Status of accountability

    In 2021, EOH brought a R1.5 bn damages claim against Mackay related to his alleged misconduct and facilitation of improper payments while managing EOH’s Public Sector division. Mackay was arrested on charges of corruption on 5 June 2024 and appeared in court, where he was granted bail.

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    Reno Neil Barry

    TSS financial manager Alleged misconduct: Provided accounting services to entities in which Geoff Makhubo and Patrick Makhubedu held interests, many of which Barry himself also had an interest in. Falsified financial statements to conceal the trail of irregular payments funnelled through these interconnected companies.

    Status of accountability

    The Zondo Commission recommended that Barry be investigated for potential violations of the Prevention and Combating of Corrupt Activities Act.

    ZiziKodwa

    Zizi Kodwa

    ANC employee and spokesperson Alleged misconduct: Received R1.7m in improper payments from Mackay while Mackay was an executive at EOH.

    Status of accountability

    The Zondo Commission recommended that President Cyril Ramaphosa re-evaluate Kodwa’s appointment as Deputy Minister of State Security. Kodwa was arrested on charges of corruption on 5 June 2024 and appeared in court, where he was granted bail.

    Ebrahim Laher

    Ebrahim Laher

    EOH International Head Alleged misconduct: Facilitated requests from the ANC for donations from EOH, which were allegedly made in exchange for the ANC’s influence in helping EOH secure contracts with the City.

    Status of accountability

    In 2021, EOH brought a R1.6bn damages claim against Laher related to his purported involvement in improperly facilitating payments and donations to the ANC.

    Asher Bohbot

    Asher Bohbot

    Founder and CEO Alleged misconduct: Allowed corrupt practices and mismanagement to proliferate during the latter stages of his tenure as CEO of EOH.

    Status of accountability

    In 2021, EOH brought a R1.66bn damages claim against its former CEO and founder Bohbot. This claim sought compensation for material and reputational damages allegedly caused by Bohbot’s actions, including R81m in salaries and bonuses that EOH claims he improperly received.

    John King

    John King

    EOH Chief Financial Officer Alleged misconduct: The specifics of King’s alleged involvement in corrupt practices or mismanagement at EOH are not clearly detailed.

    Status of accountability

    In 2021, EOH brought a R1.66bn damages claim against him. King died in 2021.

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    Nyiko Mutileni

    EOH employee Alleged misconduct: Alerted Mackay and Makhubo about an upcoming tender opportunity from the City before it was publicly issued.

    Status of accountability

    The Zondo Commission recommended that he be investigated for potential violations of the Prevention and Combating of Corrupt Activities Act stemming from his purported conduct.

    Story 2State Information Technology Agency, Department of Defence and Department of Water and Sanitation

    EOH allegedly colluded with employees from the State Information Technology Agency (SITA) and officials from the Departments of Defence (DoD) and Water and Sanitation (DWS) to be awarded contracts collectively valued at almost R1bn. It is unclear what the government employees gained from securing EOH contracts. EOH conceded that they had overcharged on some of the contracts and entered into a mutual agreement with the Special Investigating Unit (SIU) to pay back what was overcharged.

    Department of Home Affairs (DHA) and the State Information Technology Agency (SITA)

    Timeline
    Key Players

    2017

    Together with the Department of Home Affairs (DHA), SITA – a government entity that manages the state’s technology resources – awarded a contract worth R409m to EOH Mthombo to update the DHA’s biometrics system. The new technology – the Automated Biometric Identification System (ABIS) – was supposed to replace the DHA’s previous system, the Home Affairs National Information System (HANIS). EOH subcontracted French technology company IDEMIA for R150m to provide services EOH was unable to render. The DHA paid EOH R280m for hardware, software and services rendered in 2017.

    2018

    A forensic audit for 2018/19 by the Auditor-General of SITA pointed to evidence of collusion between SITA employees and EOH to ensure that EOH was awarded the ABIS contract. The ABIS implementation suffered significant delays because of legality issues around the contract. The system was supposed to go live in May 2019 and be fully implemented by March 2021.

    2020

    DHA appointed Nexia SAB&T, a forensic consulting firm, to investigate the ABIS contract. It found several problems with EOH’s bid, including that EOH had been provided with insider information to tailor its bid a year prior to it being advertised. The firm concluded that EOH and IDEMIA had been awarded the contract corruptly.

    2021

    March: A controversial decision was taken to give IDEMIA the ABIS contract for R65m, following EOH’s withdrawal from all public sector contracts and its failure to deliver. The decision raised concern because it allegedly did not follow proper procurement procedures, and because IDEMIA was reportedly part of the reason that EOH was unable to deliver on the ABIS contract. National Treasury argued that this was the best option because readvertising the tender would further delay the project. IDEMIA was given until April 2021 to complete the implementation of ABIS.

    April: IDEMIA requested an extension until October to deliver on the ABIS contract. It asked for two further extensions to January 2022.

    2022

    January: IDEMIA had still not delivered on the ABIS contract and requested another extension.

    November: The first phase of ABIS was launched but encountered technical issues that temporarily limited its use.

    2023

    May: Phase 2 of ABIS was launched and it is projected to be completed in March 2024. The DHA has therefore still not fully implemented ABIS in place of HANIS. IDEMIA has been paid R14m to date despite not rendering services in time. EOH and the DHA are undergoing arbitration as both parties are suing the other for damages. EOH is hoping for R44m and DHA R47m. It is unclear what SITA employees gained from securing EOH contracts.

    SITA employees

    Alleged misconduct: It is unclear who at SITA colluded with EOH.

    Status of accountability

    SITA informed the Portfolio Committee on Home Affairs that a criminal complaint had been laid with the Hawks in 2021 against those implicated. The matter was ongoing as of September 2023.

    DHA officials

    Alleged misconduct: It is unclear who at the DHA is liable for irregularly awarding the contract.

    Status of accountability

    As of December 2023, the DHA and EOH are in arbitration as both parties are suing the other for damages.

    EOH employees

    Alleged misconduct: It is not clear who at EOH colluded with SITA employees.

    Status of accountability

    It is not clear whether criminal complaints or disciplinary action have been pursued. As of December 2023, the DHA and EOH are in arbitration as both parties are suing the other for damages.

    IDEMIA

    Alleged misconduct: Accused of failing to deliver on the ABIS project within the scheduled timeframe, which has resulted in a delay of over two years after IDEMIA assumed full control of the project’s implementation. Despite the delay, IDEMIA has reportedly been paid R14m to date for services rendered on the project.

    Status of accountability

    In an effort to prevent further delays, the National Treasury has opted to keep IDEMIA involved in the ABIS project rather than terminating their contract.

    Department of Defence (DoD)

    Timeline
    Key Players

    2018

    November: A whistleblower from Microsoft South Africa lodged a complaint with the United States Securities and Exchange Commission pertaining to a contract between EOH Mthombo and the DoD in South Africa for the resale of Microsoft software licences valued at R120m.

    2019

    February: The public heard that Microsoft had terminated a longstanding business arrangement with EOH.
    September: The SIU found that EOH had colluded with the DoD to overprice Microsoft software licences by more than R41m.

    2021

    EOH signed an acknowledgement of debt and agreed to pay back R49m (inclusive of interest) to the DoD over three years. The SIU said it would refer the matter to the NPA for criminal charges. It is unclear what the DoD employees who colluded with EOH gained from awarding EOH the contract.

    DoD officials

    Alleged misconduct: It is unclear who at the DoD colluded with EOH to inflate the contract prices.

    Status of accountability

    It is unclear whether criminal complaints have been laid or disciplinary measures taken.

    EOH employees

    Alleged misconduct: It is unclear who at EOH colluded with DoD employees on the contract.

    Status of accountability

    EOH signed an acknowledgement of debt with the SIU to repay R49m to the DoD. EOH said it contacted the Hawks and the Financial Intelligence Unit to report the matter before the SIU investigation.

    Department of Water and Sanitation (DWS)

    Timeline
    Key Players

    2012 – 2017

    EOH reportedly entered into four irregular contracts with DWS. These were contracts for SAP Information Technology (IT) licences collectively worth more than R470m.

    2021

    The SIU began investigating the IT contracts and found they had been irregularly awarded to EOH by DWS following collusion between members of the two parties.

    2022

    EOH signed an acknowledgement of debt to pay back more than R191m (inclusive of interest) to DWS. It is unclear what the DWS employees who colluded with EOH gained from awarding EOH the contract.

    DWS officials

    Alleged misconduct: It is unclear who at DWS colluded with EOH to award the contracts irregularly.

    Status of accountability:

    In May 2023, DWS told Parliament that regular meetings between the Director-General and the SIU were taking place to track the progress of cases involving officials implicated in wrongdoing.

    EOH employees

    Alleged misconduct: It is unclear who at EOH colluded with DWS officials to award the contract.

    Status of accountability

    EOH signed an acknowledgement of debt to repay R191m (inclusive of interest) to DWS.

    Story 3South African Police Service and the National Prosecuting Authority

    Summary
    Timeline
    Key Players
    After securing contracts with SAPS and the NPA – collectively worth more than R287m – EOH allegedly siphoned off almost R45m by paying various front companies despite no services being rendered. These front companies, directed by Christo de Bruin and George Sebulela, reportedly paid companies associated with Jehan Mackay and Patrick Makhubedu from EOH and their associate Reno Barry from Mfundi Mobile.

    2015

    EOH Mthombo won a R68.7m contract with the NPA to provide Information and Communication Technology (ICT) support services for three years (the NPA ICT Support contract).

    2016

    After receiving funds for the NPA ICT Support contract, EOH paid a company called Sebtech Technologies, directed by George Sebulela, in increments (totalling R2.1m over time). Sebulela is a businessman on the boards of many associations and lobby groups, as well as Eskom and Brand SA, a tourism marketing company. Allegedly directed by Barry (EOH senior employee and TSS financial manager, as well as a business partner of Makhubedu), Sebtech then paid R1.6m to Mfundi.

    EOH also made payments of R1.7m to a front company called Silver Touch, which did not seem to render any services in exchange – the Zondo Commission was unable to verify if this was connected to the NPA ICT Support contract.

    February: EOH Mthombo was awarded a three-year contract with SAPS valued at R210m for the installation of Huawei equipment at SAPS sites and Telkom Towers – termed the SAPS National Network Upgrade Project (SAPS NNUP).

    April: R209.9m of the invoiced R210m was paid to EOH Mthombo by SAPS. EOH senior employees siphoned R42.5m of this amount to front companies. First, they attempted to get companies Vitom and Alteram to act as fronts. The entities seemed to get ‘cold feet’ about the transaction, so Sebtech Technologies ended up being the company to receive the payment from EOH a week after EOH had been paid by SAPS.

    An investigation showed that Sebtech did not provide any services in exchange for the payment. A day after receiving the payment from EOH, Sebtech paid the R42.5m to another front company called Martistyle, which was founded by Christo de Bruin. Martistyle made payments of unknown amounts to TSS belonging to Jehan Mackay, a senior employee of EOH, and his father (TSS was not acquired by EOH). Email correspondence implicates Makhubedu as a point of contact for Sebtech on both the NPA and SAPS contracts, including trying to cover up the irregular R42.5m payment.

    Jehan Mackay

    Jehan Mackay

    EOH Managing Director of Public Sector, TSS director Alleged misconduct: TSS, a company led by Mackay, allegedly received a portion of R42.5m siphoned from a contract with SAPS.

    Status of accountability

    In 2021, EOH brought a R1.5bn damages claim against Mackay related to his alleged misconduct and facilitation of improper payments while managing EOH’s Public Sector division.

    Patrick Makhubedu

    Patrick Makhubedu

    EOH sales director Alleged misconduct: Served as the point of contact at EOH for facilitating the siphoning of funds from contracts with SAPS and the NPA. Attempted to conceal EOH’s payment of R42.5m to the company Sebtech.

    Status of accountability

    The Zondo Commission recommended that Makhubedu be investigated for potential corruption related to these allegations actions.

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    Reno Neil Barry

    TSS financial manager; Mfundi Mobile director Alleged misconduct: Mfundi Mobile received R1.6m that was siphoned from a contract between EOH and the NPA.

    Status of accountability

    The Zondo Commission recommended that Barry be investigated for potential violations of the Prevention and Combating of Corrupt Activities Act related to his alleged conduct in facilitating the flow of corrupt payments through manipulated financials.

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    George Sebulela

    Sebtech director Alleged misconduct: Sebtech served as a front to receive R44.6m siphoned from contracts between EOH and SAPS, and EOH and the NPA. Sebtech made payments to other front companies that had links to senior EOH employees Mackay and Makhubedu and Barry.

    Status of accountability

    No criminal charges have been brought against him.

    Christo de Bruin

    Christo de Bruin

    Martistyle founder Alleged misconduct: Martistyle acted as a front company to receive R42.4m siphoned from the SAPS contract with EOH. Martistyle made payments to TSS, Mackay’s company.

    Status of accountability

    Died in a helicopter accident in June 2020.

    RecentCase Updates

    Latest developments from news sources
    • 5 June 2024: Kodwa and Mackay were arrested on corruption charges relating to EOH. They were released the same day after posting R30 000 bail. The case against Kodwa returns to court on 10 September 2024.

      Kodwa resigned as Minister of Sport, Arts and Culture the following day and as an MP in late July.

      Mackay applied to the NPA to have the charges against him withdrawn. The corruption case against Mackay and Kodwa was postponed as a result. Kodwa will not be joining Mackay’s application but does intend to plead not guilty when the case goes to trial.

    Public Impact

    Shareholders lost R24bn

    EOH shareholders lost R24bn after corruption allegations emerged.

    60+ employees retrenched

    Because EOH and the City of Johannesburg engaged in improper procurement procedures, EOH was not considered for a renewal of its IT support contract in 2021. At least 60 employees were retrenched in anticipation of the contract’s termination.

    New biometric system delayed

    DHA’s new biometric system would have sped up certain operations, but its implementation was repeatedly delayed because EOH pulled out of the contract following its corruption scandal.