Steinhoff wants to pay R17 billion to end its R135 billion lawsuit nightmare
Steinhoff – once a behemoth – is a mere shadow of its former self.
It’s been three years since the largest accounting fraud in South African history made headlines around the world.
The fraud wiped more than R250 billion from the JSE, hammering the pensions of millions of South Africans.
To give you an idea of the scale; the value of the fraud at Enron – the world’s largest-ever corporate scandal – was about R650 billion.
About 90 lawsuits worth R135 billion later, the company is attempting to pay R17 billion to make the nightmare end.
Former Steinhoff Chairperson and largest shareholder Christo Wiese, who lost billions (erasing more than half his wealth), says the settlement is a step in the right direction.
Refilwe Moloto interviewed Financial Mail Editor Rob Rose.
Rose is the author of “Steinheist: Markus Jooste, Steinhoff and SA’s biggest corporate fraud”.
Steinhoff, of course, has no money left… They’re proposing a settlement of about R17 billion… It would help them get past a major hurdle to stay alive…Rob Rose, Editor - Financial Mail
The other solution is to liquidate the company…Rob Rose, Editor - Financial Mail
Wiese sued them for R59 billion… if anyone could’ve detected this, you’d imagine it was the Chair… For him, it’s better than zero…Rob Rose, Editor - Financial Mail
I find it staggering that Steinhoff hasn’t released its forensic report, paid for with shareholders’ money, and the Hawks haven’t so much as knocked on Markus Jooste’s door… He was in Hermanus at some stage, and there’s talk of him being in Stellenbosch at the moment.Rob Rose, Editor - Financial Mail
German investigators are waiting to see what happens with our local authorities… a little bit naïve of them…Rob Rose, Editor - Financial Mail
If you don’t sort out Steinhoff… It’s important for investors to believe that if they get cheated there’s accountability… It’s one of the reasons foreigners are reluctant to invest.Rob Rose, Editor - Financial Mail
Asset managers – including Allan Gray, Coronation and a few others – did claim. They sold their claim to an overseas litigation firm… They invested in a company that was a big fraud… You can argue they should’ve done more… But I don’t think pensioners hold asset managers accountable…Rob Rose, Editor - Financial Mail
The JSE has to really up its game…Rob Rose, Editor - Financial Mail
Listen to the interview in the audio below.
Businesswoman and social media influencer Zari Hassan scooped the One Africa award for Social Media and Business Innovation.Read More
Local sanitaryware brand, Cobra, is equipping young women with useful plumbing skills that will make them more employable.Read More
WhatsApp has launched a new feature that gives users the ability to cross-check those "viral" messages forwarded on the chat platform.Read More
It’s possible that all the games will take place in Nelspruit, says IOL sports editor John Goliath.Read More
Thabane Zulu (former DG, Human Settlements) reluctantly testified before the Zondo commission on Thursday, says eNCA’s Erin Bates.Read More
'Mr Eazi' launched the Africa Music Fund to support the continent's creative talent. Bruce Whitfield interviews Lee Kasumba.Read More
Justin Chadwick (Citrus Growers' Association) says it's all thanks to the perceived immune-boosting attraction of Vitamin C.Read More
Bruce Whitfield interviews Whitey Basson, who believes it's just not good enough for govt to say ban will be lifted but not when.Read More
Bruce Whitfield talks to MTN CFO Ralph Mupita about the reasons for the move and the company's huge profit increase.Read More
"It’s not rational to allow packed taxis, but not a glass of wine in a controlled environment," says Francois Rossouw.Read More
"Covid-19 is going to be with us for years. On balance, it’s better for kids to be in school," says Prof Mignon McCulloch.Read More
“This is good stuff,” says Wayne Duvenage about the halting of pension payouts to government employees implicated in corruption.Read More
"If I was President Cyril Ramaphosa, I would take these suggestions seriously," says the UDM leader Bantu Holomisa.Read More
Marc Lubner on the NGO's programmes for young South Africans and how working with Nelson Mandela inspired his life's work.Read More
"If allowed to trade, we can’t be on the edge of our seats every time that the President is about to speak," pleads Kurt Moore.Read More
Zimbabweans are mobilising against the state’s brutal attacks, but seek regional solidarity, says Amnesty International SA.Read More
Nike's hit the mark, again, with its latest tv ad campaign. Branding expert Andy Rice awards it this week's hero's rating.Read More
Eskom debt servicing costs are "running wild", says Tygue Theron. Increased taxes or tariffs – either way, you and I will pay.Read More
Bruce Whitfield interviews Vusi Thembekwayo about his attitude to money (hopes and fears, successes and failures, etc.).Read More
"When your thoughts are centred around the meaning of your life, you unleash immeasurable power,” says author Richard Wright.Read More