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Steinhoff wants to pay R17 billion to end its R135 billion lawsuit nightmare

28 July 2020 11:28 AM
Tags:
Allan Gray
Steinhoff
Christo Wiese
Refilwe Moloto
Financial Mail
Coronation
markus jooste
accounting fraud
Rob Rose
corporate fraud
Breakfast with Refilwe Moloto
Enron

Meanwhile, the Hawks haven’t so much as knocked on Markus Jooste’s door, says Financial Mail editor Rob Rose.

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.

Former Steinhoff chief executive officer Markus Jooste in Parliament on 5 September 2018. Picture: Cindy Archillies/EWN

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.


Read: It came like a bolt out of the blue! – Christo Wiese (on the Steinhof crisis)


Refilwe Moloto interviewed Financial Mail Editor Rob Rose.

Rose is the author of “Steinheist: Markus Jooste, Steinhoff and SA’s biggest corporate fraud”.


Read: Markus Jooste will absolutely hate this book by FM Editor Rob Rose


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.


28 July 2020 11:28 AM
Tags:
Allan Gray
Steinhoff
Christo Wiese
Refilwe Moloto
Financial Mail
Coronation
markus jooste
accounting fraud
Rob Rose
corporate fraud
Breakfast with Refilwe Moloto
Enron

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