Breakfast show host Kieno Kammies explained that if you know Ackermans, Hi-Fi Corp, Incredible Connection and Tekkie Town, then you know the company Steinhoff - one of South Africa's largest companies.
The company's CEO Markus Jooste resigned amid allegations of acquisitions without control, tax fraud, earnings manipulation and collusion between executives trying to short change investors to hide loses. Kieno Kammies spoke to CEO of Insignia Group, Magda Wierzycka who painted a very bleak picture about the companies future and why South Africans must care.
Most asset managers help Steinhoff as an investment in portfolios be it unit trusts or retirement fund portfolios and when I say most asset managers I'm talking about Coronation, Allan Gray, Investec and Prudential. So if you have any asset managers managing your savings in any form whatsoever, the value of your savings would've been affected by the fact that R100 billion disappeared.— Magda Wierzycka, CEO Insignia Group
Just to give you an idea of the magnitude, the largest investor is government pension funds via PIC that lost R40 billion, which is the equivalent of what SAA needs for it's bailout and that money disappeared overnight.— Magda Wierzycka, CEO Insignia Group
Listen here for more on the impact of Steinhoff's implosion...