Unequal Salary Increases at EOH Upsets Low Level Employees, Balance Sheet Inflation Discovered

Unequal Salary Increases at EOH Upsets Low Level Employees, Balance Sheet Inflation Discovered

  • EOH has been accused of inflating executive's salaries while low=level employees only receive half of their year-end bonuses
  • Stephen Van Coller, the CEO of EOH, has received a 26% salary increase while many of his staff only received a 1.5% increase
  • It has also been found that EOH committed tax fraud by inflating their balance sheet to protect a subsidiary

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JOHANNESBURG - EOH, a South African technology business, has reportedly inflated the salaries of executives while low-level employees have low salary increases and half year-end bonuses.

The employees will receive the second half of their 2021 bonuses in April 2022. Many EOH low-level employees only received a 1.5% salary increase and the CEO, Stephen van Coller, enjoyed a 26% salary increase.

According to MyBroadband, Van Coller's current salary is R14.5 million. EOH employers have expressed that they feel that Van Coller and other executives receive high salaries by limiting what low-level employees earn.

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EOH, Stephen van Coller, business, technology, bonus, salary increase, balance sheet, fraud
EOH CEO Stephen Van Coller (pictured) has been accused of enriching himself at the expense of low-level employees. Image: Papi Morake/Gallo Images via Getty Images
Source: Getty Images

EOH's balance sheet and its consequences

IOL reports that EOH has inflated its balance sheet to prevent Mehleketo Resourcing (Pty) Ltd, one of its subsidiaries, from going into liquidation. EOH provided Mehleketo with an R150 million bailout, which was not officially recorded in their financial statements.

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EOH is listed on the JSE as a public company, which makes it accountable to the public in terms of disclosing its financial statements and any funding it gives to its subsidiaries. The company has flouted this requirement.

A negative consequence of the incorrect balance sheet is that EOH created an R39 million SARS debt for itself. SARS says that they will be investigating EOH's transactions.

Reactions to EOH's shady business practices

@ThamiMatshoba believes:

"Arrest these thugs and stop wasting resources on cases that are not winnable."

@niallmarinus asked:

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"Why do people catch on nonsense like this?"

@SimiloSilwana said:

"Eish sadly, sometimes you are faced with taking a pay cut and shortened working hours or being retrenched."

@toliemoutzouris shared:

"But EOH has been doing this for years. Employees are overlooked and Execs get bonuses and increases."

Retirement fund recipients will see changes in how they are taxed from 2022, SARS says

Previously Briefly News reported that the South African Revenue Service (SARS) has announced that from the beginning of the new financial year on 1 March 2022 it will adjust its taxes for people who receive an income from retirement funds in addition to other income sources so that such people do not incur multiple taxes.

Currently, SARS imposes large debts on people who have multiple income sources, where these sources include retirement funds.

Legislation has recently been passed which makes it possible for SARS to calculate the tax for people who fall into this category on a case-by-case basis.

Source: Briefly News

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