German authorities file charges on former Steinhoff executives
Company’s share price largely ignores news of looming criminal charges
THE NET IS finally closing in on Steinhoff International’s former executives, with people familiar with developments saying that a former chief executive who oversaw the R200 billion accounting meltdown that led to a 95 percent decline in the company’s share is among those who have been charged by the German authorities.
Reports emerged yesterday that German authorities filed charges against former Steinhoff International bosses, including former chief executive Markus Jooste, for alleged balance sheet fraud.
The executives, who are responsible for SA’s biggest corporate scandal, are said to have been indicted by authorities in Oldenburg, near Westerstede, where Steinhoff was founded.
However, the company’ share price largely ignored the news of the criminal charges first laid nearly four months ago, remaining flat at R1.84 from yesterday’s close of R1.85.
James-Brent Styan, the author of Steinhoff: inside SA's Biggest Corporate Crash, said the developments indicated the charges were long coming.
“We are waiting for the concrete criminal charges to be laid against those individuals,” Styan said.
“The names have been omitted in the potential criminal charges claim. However, any criminal charges brought against the guilty individuals in the Steinhoff saga would be welcomed. It has taken too long for the justice system to bring those individuals who are responsible for the Steinhoff collapse to account for their actions.”
Jooste is facing separate criminal charges by the Hawks.
In October, Jooste was fined R122 million by the Financial Sector Conduct Authority. He has taken the fine on review.
Steinhoff was rocked by an accounting scandal in December 2017 which led to a more than 90 percent collapse in its share price in one day and cost the group more than R200bn in market capitalisation.
Jooste resigned in a huff after the admission to accounting irregularities told parliament that he was innocent of any wrongdoing.
Styan said this was a slap on the wrist for Jooste.
“It is absolutely ridiculous to impose such a small fine to someone who was at the helm when the scandal took place. It seems as if the Hawks and the National Prosecuting Authority (NPA) don’t have enough capacity or expertise to bring those guilty individuals to book,” he said.
“It is even more disturbing to read that Steinhoff is willing to give the NPA R30m to complete their investigations into the company,” Styan said.
Styan said that the biggest question would be whether SA authorities would be willing to extradite Jooste to face the charges in Germany.
“I don’t think so, because it would be a complete humiliation for our justice as it would have failed to act against our own,” he said.