People must pay for the Steinhoff debacle

No progress has been made but shareholders and government pensions are at risk, writes Nathan Cheiman from Northcliff.

Iagree entirely with Business Leadership South Africa (BLSA) when they say that prosecutions must ensue against those responsible for the Steinhoff debacle. In terms of the Company’s Act regulating companies registered in SA, the directors are responsible for all acts of negligence, fraud and theft in a company.

Steinhoff CEO Markus Jooste’s resignation inaugurated the rot in Steinhoff. Alarm bells went off as a result.

It appears that no progress has been made despite shareholders and government pensions being at risk.

Perhaps the National Prosecuting Authority does not have the attributes to investigate complicated commercial malfeasance.

One thing is certain at this stage, and that is fraud was perpetrated, by virtue of financial irregularities having been disclosed and Jooste’s subsequent resignation.

The CEO of BLSA, Bonang Mohale, is correct when he says “the Steinhoff debacle could be a test case”, referring to the amended Companies Act, which holds individual directors personally liable .

At this stage, accounting firm Deloitte must shoulder an equal amount of blame. Indeed, were I to advise shareholders, the accounting firm would be one of the defendants in a claim for damages, jointly and severally, with the directors.