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Bloomberg
Steinhoff International Holdings NV is seeking more than 850 million rand ($59 million) from former Chief Executive Officer Markus Jooste for his role in the accounting crisis that triggered the global retailer’s near-collapse.
The owner of Poundland in the UK and Pep stores throughout Africa is looking to claw back base salaries, bonuses and other incentives paid to Jooste over several years from 2009, according to legal papers filed to the High Court in Cape Town.
Ex-Chief Financial Officer Ben la Grange is being sued for about 271 million rand as part of the same case.
The lawsuit leaves little doubt that Steinhoff’s current management holds Jooste chiefly responsible for the series of dubious third-party transactions and artificially inflated asset values at the South African company. The ex-CEO and La Grange were among eight people named by Steinhoff in March as being allegedly behind the irregular deals, which ultimately forced it to restate years of financials.
The shares have collapsed by 97 percent since the crisis erupted in late 2017, while Steinhoff remains locked in talks with creditors about the restructuring of $12 billion of debt. The company is being investigated by regulators and authorities around the world, including South Africa’s anti-graft police unit known as the Hawks.
The payment of salaries and bonuses to Jooste and La Grange was dependent on “the sound and successful financial performance†of the retailer, according to the court papers.