Cape Town — Ex-Steinhoff boss, Markus Jooste, has been hit with a mammaoth R475 million fine by the Financial Sector Conduct Authority (FSCA).
Jooste and Dirk Schreiber were found to have published false and misleading statements regarding Steinhoff International Holdings Limited and Steinhoff International Holdings NV. These contraventions relate to the annual financial statements and reports for the period form 2014 to 2016, and the first half of 2017. FSCA noted that’s when the company was listed on the JSE and the Frankfurt Stock Exchange, the FSCA said in a statement.
“This conduct meant that investors base their assessment of Steinhoff International prospects on false incomplete or misleading information which resulted in material destruction of value estimated to run in the hundreds of millions of rand in losses including losses suffered by various pension funds.” SABC News reported FCSA commissioner, Unathi Kamalana saying.
[Media Release]
Update on Steinhoff International Holdings Limited and Steinhoff International Holdings NV: https://t.co/6ArlgAd7T6#FSCAEnforcements pic.twitter.com/ruJm04ogW6
— FSCA South Africa (@fscasouthafrica) March 20, 2024
Jooste was infamously involved in the Steinhoff accounting scandal that led to he collapse of the global retailer, in 2017. In September 2019, the company was forced to pay an administrative penalty of R1,5 billion (later reduced to R53 million) before Steinhoff became a private owned company on 2023.
Last year, Schreiber was handed a three-and-a-half-year jail sentence by a German court. The authority said that due to Schreiber’s cooperation with the investigation, he would not face any penalty, while it warned that further investigations continued into similar contraventions by other individuals.
The FSCA has given Jooste almost a month to settle the fine (19 April 2024) and includes a R10m contribution to reimburse the FSCA for reasonable costs incurred in connection with the investigation of the contravention.
Markus Jooste is facing more sanctions over his role in the Steinhoff corruption scandal, where R200 billion was lost. FSCA’s Unathi Kamlana explains the investigation process that led to Jooste being slapped with a R475 million administrative penalty.https://t.co/0KLX021Mpp pic.twitter.com/Hnh7cf32gK
— Newzroom Afrika (@Newzroom405) March 20, 2024
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Compiled by Matthew Petersen
