Unequal pay increases at EOH upsets low-level workers, balance sheet inflation discovered

  • EOH has been accused of inflating executive salaries as low-level employees receive only half of their end-of-year bonuses
  • Stephen Van Coller, CEO of EOH, received a 26% pay rise while many of his employees only received a 1.5% raise.
  • It was also found that EOH committed tax fraud by inflating its balance sheet to protect a subsidiary

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JOHANNESBURG – EOH, a South African tech company, is said to have inflated executive salaries while low-level employees are said to have small pay increases and year-end bonuses.

Employees will receive the second half of their 2021 bonuses in April 2022. Many low-level EOH employees received only a 1.5% pay rise and CEO Stephen van Coller benefited from ‘a 26% salary increase.

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

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

The results of EOH and its consequences

IOL reports that EOH inflated its balance sheet to prevent the liquidation of Mehleketo Resourcing (Pty) Ltd, one of its subsidiaries. EOH provided Mehleketo with a R 150 million bailout, which was not officially recorded in its financial statements.

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EOH is listed on the JSE as a public company, making it accountable to the public in terms of its financial disclosure and any funding it grants to its subsidiaries. The company has flouted this requirement.

A negative consequence of the incorrect balance sheet is that EOH created a SARS debt of 39 million rand. SARS says they will investigate EOH transactions.

Responses to EOH’s Questionable Business Practices

@ThamiMatshoba believes:

“Stop these thugs and stop wasting resources on things that are not winnable. “

@niallmarinus asked:

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“Why do people understand nonsense like that?” “

@SimiloSilwana said:

“Eish, unfortunately, sometimes you are faced with a drop in pay and shortened working hours or a layoff.”

@toliemoutzouris shared:

“But EOH has been doing this for years. Employees are neglected and executives receive bonuses and raises.”

Retirement fund beneficiaries will see changes in the way they are taxed from 2022, according to SARS

Previously Brief News reported that the South African Revenue Service (SARS) has announced that starting with the start of the new fiscal year on March 1, 2022, it will adjust its taxes for people who receive income from retirement funds in addition to other sources of income so that these people do not incur multiple taxes.

Currently, SARS places significant debts on people with multiple sources of income, including retirement funds.

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

Source: briefly.co.za

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