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Mayet steps down as EOH CEO amid major restructuring

Zunaid Mayet is to take the reins at newly-created subsidiary, Nextec.

EOH CEO Zunaid Mayet is relinquishing his role as group CEO to take the reins at newly-created subsidiary Nextec, the JSE-listed IT services group said in a statement on Wednesday before markets opened.

The announcement comes in the same week that EOH’s share price has come under significant renewed pressure, falling 9.7% on Monday and a further 4.6% on Tuesday. It is now trading at levels last seen in 2011.

In March, EOH announced that it would split its business into two new operating entities, one under the EOH brand focusing on legacy ICT operations, and a new business — which will be called Nextec, it announced on Wednesday — to focus on high-growth opportunities. Rob Godlonton will head the new EOH subsidiary.

The creation of the two independent businesses will be completed by 1 August, EOH said.

The EOH Holdings corporate structure will be responsible for corporate finance, strategy, group reporting, investor relations, risk and compliance. In addition to the growth expected from the two newly created businesses, EOH Holdings will drive growth in the areas of innovation, own intellectual property/software, international business, and emerging technologies, it said.

The board is in the process of finalising the appointment of a new CEO for EOH Holdings. “The appointee is highly regarded, with a solid track record and a strong background in corporate finance, investment banking and technology. Further details on the new CEO will be made available in the coming weeks.”

At the same time, the group said it will “reconfigure” its board of directors. Jesmane Boggenpoel has been named as independent nonexecutive director, chair of the governance and risk committee, and a member of the audit committee, while Ismail Mamoojee has been appointed as an independent nonexecutive director, chair of the audit committee, and member of the governance and risk committee.

The following directors will resign from the EOH Holdings board with effect from 1 July:

  • Lucky Khumalo, after serving as a non-executive director;
  • Brian Gubbins, who will continue in his executive role in the business;
  • Rob Godlonton, who will continue in his executive role in the business;
  • Ebrahim Laher, who will continue in his executive role in the business;
  • Jehan Mackay, who will continue in his executive role in the business; and
  • Johan van Jaarsveld, who will leave the group on 31 July.

At the same time, EOH has provided an update on work done by law firm ENSafrica into governance at the group following media reports about impropriety in some of its public sector dealings, particularly around the CGT Group, an acquisition it has since unwound.

“ENSafrica conducted a review of the commercial activities of the GCT Group and found no evidence implicating EOH of complicity, awareness or condonation of any illicit activity that may or may not have taken place,” EOH said.

“ENSafrica also found that a comprehensive due diligence was conducted prior to the acquisition of GCT and that there was no adverse information regarding GCT at the time. Accordingly, there was no impediment to engaging with GCT.”

ENSafrica has been and will continue to perform an ongoing risk-based, monitoring and oversight role in all of the group’s major public sector bids, contracts and engagements, it added. “ENSafrica has also overseen EOH’s review of all material current public sector contracts to ensure that governance relating to these contracts was adhered to.

“EOH has adopted a checklist that was developed with ENSafrica to further enhance governance and to promote consistency relating to public sector engagements. ENSafrica has worked with the EOH Group to further develop and strengthen its due diligence procedures to ensure that all new business partners are optimally screened to enhance business partner selection.”

Finally, it said the law firm is supporting it with its group regulatory compliance framework and the adoption and implementation of the key principles of ISO 37001: the international standard for anti-bribery management systems. “This ensures that the group is in line with international best practice governance and regulatory compliance standards while meeting local and global requirements.”

(c) 2018 NewsCentral Media

This article was published with the permission of TechCentral, the original publication can be viewed here

 

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”Well, time wounds all heels”

Jane Ace (1905 – 1974)

EOH – When will you learn that your ‘’actions have consequences’’ – hence the fall in your share price?

EOH also looks like a company that seems addicted to continual process changes without stopping to wonder why the last one didn’t work.
One of their favourite addiction methinks, is that of reorganization – endlessly recycling a pattern of centralization and then decentralization.
Methinks these are subconscious patterns of behaviour that might underpin an organization’s performance, but my experience in Corporate Treasury is far different.
The key is to listen to what people talk and their behaviour, it is the style of the unit and the way things are done. The key to change must be the understanding thereof and the way things are done.
I don’t people in big organizations like EOH resist being change during centralization and then decentralization, they only resist being changed.

Sadly its the management left who are more of a problem. Their directorship resignations don’t change the fact that they are still in their executive positions.

I appreciate a leader needs to take responsibility, but Mayet leaving doesn’t change the reality of the current leaderships ..if anything, the management team has deteriorated.

Did everybody thought the EOH share price exponential growth could go on for ever?

I got out at 160 against psg’s advice.

Why, I personally witnessed how they pulled strings in goverment.

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