Charge Steinhoff bosses

Business Leadership SA CEO Bonang Mohale is correct in saying prosecutions must ensue against those responsible for the Steinhoff debacle. Erstwhile CEO Markus Jooste sparked the rot in Steinhoff when he resigned. Alarm bells rang as a result.

Companies in Holland have purportedly sent a letter of demand to Absa, citing the bank as a responsible party in the losses incurred as a result of Steinhoff’s financial collapse. It is difficult to envisage which set of laws they intend to rely on, but clearly in SA they will not get off the ground with their claim.

Mohale is also correct in saying the Steinhoff debacle could be a test case for the amended Companies Act, which holds individual directors personally liable for malfeasance in their companies. No progress has been reported by the National Prosecuting Authority (NPA) on its investigations, despite many pension funds being at risk of losing billions of rand.

Perhaps the NPA does not have the intellectual capital to investigate complicated commercial malfeasance. However, it seems clear that frauds were perpetrated, even though auditors PwC will only conclude their investigations at the end of the year.

Steinhoff’s former accounting firm, Deloitte, must surely shoulder equal responsibility. Indeed, if I were to advise investors and shareholders, Deloitte would be one of the defendants cited in a claim for damages, together with the erstwhile Steinhoff directors.

In the meantime, Jooste and others walk free and enjoy the fruits of their impropriety.

Nathan Cheiman Northcliff