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EOH looks inwards after Microsoft cancellation

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 15 Feb 2019
Stephen van Coller was appointed EOH Group CEO in July last year.
Stephen van Coller was appointed EOH Group CEO in July last year.

EOH has proactively initiated an internal investigation, supported by ENSafrica, into EOH Mthombo's channel partner business unit, the company said in statement this afternoon.

This comes after the group confirmed, this week, it had been advised that Microsoft has given notice of its intention to terminate its channel partner agreement with EOH Mthombo, one of its subsidiaries, with 30 days' notice.

The IT services company posted a statement on SENS saying together with Microsoft, EOH is working to better understand the concerns and rationale for the action. "Following a recent fruitful meeting between the EOH and Microsoft leadership, Microsoft has advised it is taking the EOH proposals under consideration and further review."

Commenting on the past two years, EOH says it has been the subject of numerous negative allegations.

"All these historical allegations have been proven unfounded through diligent efforts from EOH, disproving or securing the withdrawal of the stories. Notwithstanding this, the EOH reputation was tarnished, causing significant harm to our people, shareholders, customers and partners over a protracted period; masking the true value of the EOH business. As a result of the last two weeks' allegations, the board and management are widening efforts to obtain clarity and deal with any issues in the interests of all stakeholders.

"Despite all this, the business-resilience kept us strong, carried through by the commitment of our great people, and the support of our customers, technology partners and shareholders."

To future-proof the business, the JSE-listed company points out it is committed to ensuring ethical leadership throughout the group.

It goes on to say new leadership appointments, including Stephen van Coller as group CEO, are in support of the business model changes.

"In March 2018, EOH announced its new strategy, which was then further refined during the CEO 100-day update. The strategy centres on reconfiguring the group into distinct and independent businesses."

The group says it is at an advanced stage of implementing the strategy.

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