The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Johannesburg’s stock exchange plans to fine Steinhoff International Holdings NV
former CEO Markus Jooste $882,000 for violating listing rules and submitting false
financial statements.
South Africa’s main stock exchange also barred Jooste from holding an office in a listed company for 20 years, according to a statement. The move comes almost five years after the firm’s near collapse and is the second censure of a director at the firm after former Chief Financial Officer Ben la Grange was fined 2 million rand.
Steinhoff lost 98% of its market value after auditors refused to sign off on financial statements in December 2017.
Forensic investigators from PwC later confirmed that 6.5 billion euros ($7 billion) in fictitious or irregular income had been recorded at Steinhoff between 2009 and 2016, making it South Africa’s largest known fraud.
Jooste has told the JSE Ltd. that he doesn’t agree with its findings and on December 14 approached the Financial Services Tribunal for an order suspending the JSE’s decisions. While the tribunal has dismissed Jooste’s application, the payment of the fines are still being reconsidered.
There are numerous investigations taking place around the world into Steinhoff, which owns Poundland in the UK and part of Mattress Firm in the US and had been Europe’s second-largest furniture retailer after Ikea. Jooste is among four people who will go on trial in Germany next year on charges of accounting fraud.