What Is Going On With Steinhoff

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Steinhoff – what is going on?

 Steinhoff CEO Markus Jooste is under investigation for corruption and could face jail time. The Financial Services Board (FSB) said Steinhoff executives might face jail time or a maximum fine of R50-million.

The global furniture and clothing retailer reported irregularities in its accounts that prompted a probe but the nature of the irregularities remain unclear at this stage.

The Steinhoff saga has been continuing since the group’s board announced it wouldn’t release its full year financial results on time due to a German criminal and tax investigation.

With some news agency’s such as “News24” labelling the Steinhoff International Holdings, the prized jewel in many an investment portfolio “from hero to nearly zero in less than 60 hours.”

Many have tried to make sense of what’s happening with Steinhoff. Especially more so with the following of the abrupt resignation of Jooste and news of an internal probe by PwC, this caused its share price to plummet.

The story has been said to be corruption from the private sector. The dramatic collapse of Steinhoff is a huge event with ramifications that will reach far and wide. One thing is clear, however; it’s private sector corruption that steals primarily from company shareholders.

Hundreds perhaps even hundreds of thousands of government employees whose pension funds have been exposed to the company’s stocks, as well as other private and institutional investors, will be left the poorer by what happened.

With one Facebook status stating: “Has Trevor Manuel and his pals said anything about the Steinhoff corruption scandal?”

 

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