Financial Mail

THE HERMIT OF HERMANUS

With the prosecutin­g authority in such a mess, you have to wonder why Markus Jooste is so afraid of breathing a word to anyone

- @robrose_za roser@fm.co.za

As far as the coastal version of Pokémon GO goes, spotting the Hermit of Hermanus has become a favourite pastime in the Western Cape seaside town. Yet last weekend, Markus Jooste, the erstwhile CEO of retail company Steinhoff, broke cover to attend the baptism of his first grandchild at the NG Kerk. The child is the daughter of Jooste’s right-hand man, Stefan Potgieter, who is married to his daughter.

Netwerk24, in its report on the baptism, said only a few friends and family attended. Jooste sat at the back, apparently, where he didn’t speak to anyone.

Many ears pricked up at the news, as one of the perpetual questions on everyone’s lips has been, where in the world is Markus?

Since the Steinhoff scandal erupted in December, the 57-year-old product of Stellenbos­ch University has gone to ground. He doesn’t respond to messages, or even to friends who greet him when they bump into him.

Nonetheles­s, it is well known that Jooste spends most of his time in Hermanus, in his house that spans a full block on 10th Street in Voëlklip. The low white walls of that house still bear the scars of having been repainted repeatedly in December, after a spate of graffiti raids in which words like “thief” and “con artist” were painted on them. Neighbourh­ood residents report that Jooste sometimes walks the few metres down to the cliff paths around the beach, or shops at the nearby OK Minimark.

Jooste also often goes to Burgundy — a fantastic restaurant in the old harbour located in what is thought to be the oldest building in Hermanus, a stone and clay fisherman’s home built in 1875. The name, ironically, evokes the familiar Steinhoff colours.

Jooste favours a table in the corner at the front. “When he’s there, he keeps a low profile. In the old days, he’d chat to everyone, he was very friendly. But he’s no longer like that,” says one of the other patrons who has seen him in town.

Another Hermanus resident says that, initially, there was plenty of anger in town from people who’d put money into Steinhoff and lost it. “People’s attitudes have probably softened over time — I don’t think there’s much ill-will towards him any more,” he says.

Where anger is most certainly directed is towards the chaotic National Prosecutin­g Authority (NPA), which, despite very apparent fraud and Jooste’s own admission that he’d made some “mistakes”, has not bothered to lay even a preliminar­y charge against him.

The Hawks, it seems, are waiting for the result of Pwc’s forensic investigat­ion, likely to emerge in November, before moving a muscle.

Don’t hold your breath though.

The ability of the state to prosecute any commercial crime at the moment is parlous. If you spent all night drilling into a bank safe and then, exhausted, fell asleep in that vault clutching wads of someone else’s money, you would probably back yourself to cop a loitering charge at worst. Even the VBS mastermind­s, who stole three-quarters of that bank in the most brazen way are likely sleeping soundly.

Is this, perhaps, because the awful Lawrence Mrwebi is still notionally the head of the NPA’S commercial crimes unit? Famously, Mrwebi was struck off the roll of advocates in 2016 for not being a “fit and proper person”. A few weeks ago, the Supreme Court of Appeal overturned the ruling against Mrwebi. But the appeal judges said Mrwebi’s failings might be due to “incompeten­ce or naiveté”, rather than his lack of honesty. Not exactly a rousing vindicatio­n.

Glynnis Breytenbac­h, who used to be in charge of commercial prosecutio­ns at the NPA before moving to the DA, has more faith than most.

She believes that once Mrwebi is fired (which can only be a matter of time), the prosecutor­s can once again begin doing their jobs.

“I know who’s there and what they can do. There are still skills there — not a lot, but there are,” she says. There will be accountabi­lity for Steinhoff, she says.

Jooste’s friends say that privately he has told them he has no intention of ducking accountabi­lity. They say he’s willing to be tried for what happened. Cynics might counter that with the NPA in such obvious disarray, who wouldn’t fancy their chances.

If anything has made him look guilty, it has been Jooste’s resolute silence as the allegation­s have mounted. It suggests the rot goes deeper than anyone suspected. The word from inside the PWC investigat­ion is that this is exactly what the auditors are finding. Investors should brace themselves.

Is this, perhaps, because the awful Mrwebi is still notionally the head of the commercial crimes unit?

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