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Moneyweb

The biggest corporate failure, yes. Scandal – it’s the word of those seeking sensationalism.”

This is how disgraced former Steinhoff chief executive Markus Jooste described the implosion of the high-flying retailer in parliament last week.

Steinhoff admitted to accounting fraud on December 6, 2017. This unleashed a financial markets rout, with Steinhoff’s shares losing R205 billion in value.

A brazen and unapologetic Jooste said everything I expected him to say – absolutely nothing. He pleaded innocence.

Despite 29 years in the company, Jooste wasn’t aware of any financial irregularities and blamed the retailer’s failure on its external auditor Deloitte and a German business partner.

Jooste said he resigned as chief executive on December 4 because Deloitte asked for a forensic investigation into Steinhoff’s books, which he thought would delay the release of its financial results.

According to him, his only mistake was to enter into a strategic partnership in 2007 with Austrian businessperson Andreas Seifert, who started rumours about Steinhoff. This led to German tax authorities starting a probe into Steinhoff, which Jooste said tanked the company.

Reflection of corporate SA

Jooste’s attitude is probably a reflection of how corporate SA has been given a free and the lack of consequences they face.