When the Financial Sector Conduct Authority (FSCA) hit Markus Jooste with almost half a billion rand fine this week, they took into account he earned more than R650m in four years.
Jooste allegedly committed suicide on Thursday at Kwaaiwater Beach in Hermanus after the FSCA imposed a R475m administrative penalty for contraventions of the Financial Markets Act (FMA) related to his reporting on the financial position of Steinhoff International.
This follows a previous finding by the FSCA he contravened the FMA for which he faced a penalty of R20m.
The FSCA’s finding and penalty imposed were upheld by the Financial Services Tribunal.
“The FSCA has decided to impose an administrative penalty of R475m that includes a contribution of R10m to reimburse the FSCA for reasonable costs incurred in connection with the investigation of the contravention and interest on the amount of R475m at the rate of 11.75% calculated from the date of this order to the date of payment, both days inclusive,” the penalty order read.
According to the order, in December 2016, “Jooste had created or caused transactions to be created which had no economic substance forming part of these published facts and distributed such false revenues at Mr Jooste’s discretion.”
Jooste is alleged to have inflated Steinhoff UK’s operating profit by about R5.5bn.
FSCA head Unathi Kamlana said the false operation profit was either disguised as receivables that were not recoverable or as cash equivalents that were similarly not recoverable.
He further inflated Goodwill Steinhoff UK by about R5.2bn with the FSCA saying Steinhoff UK did not have sufficient cash flow to justify the balance.
“The contributors were also not backed by any transactions with external third parties with real economic substance,” said the FCSA.
It said in his last year as CEO he earned R243.3m making him part of the top 0.1% of individuals in the world who earned more than R55.6m per year. During his four years he received an income of R651.5m from Steinhoff International.
Jooste resigned in December 2017.
“Mr Jooste attended the FSCA interviews under notice and on dates arranged with his legal representatives. He responded to questions, but his responses, in many instances, did not amount to answering the questions put to him and of which he knew or should have known the answers,” the FSCA said.
TimesLIVE
Jooste took home more than R650m from Steinhoff International in 4 years
Image: Bloomberg
When the Financial Sector Conduct Authority (FSCA) hit Markus Jooste with almost half a billion rand fine this week, they took into account he earned more than R650m in four years.
Jooste allegedly committed suicide on Thursday at Kwaaiwater Beach in Hermanus after the FSCA imposed a R475m administrative penalty for contraventions of the Financial Markets Act (FMA) related to his reporting on the financial position of Steinhoff International.
This follows a previous finding by the FSCA he contravened the FMA for which he faced a penalty of R20m.
The FSCA’s finding and penalty imposed were upheld by the Financial Services Tribunal.
“The FSCA has decided to impose an administrative penalty of R475m that includes a contribution of R10m to reimburse the FSCA for reasonable costs incurred in connection with the investigation of the contravention and interest on the amount of R475m at the rate of 11.75% calculated from the date of this order to the date of payment, both days inclusive,” the penalty order read.
According to the order, in December 2016, “Jooste had created or caused transactions to be created which had no economic substance forming part of these published facts and distributed such false revenues at Mr Jooste’s discretion.”
Jooste is alleged to have inflated Steinhoff UK’s operating profit by about R5.5bn.
FSCA head Unathi Kamlana said the false operation profit was either disguised as receivables that were not recoverable or as cash equivalents that were similarly not recoverable.
He further inflated Goodwill Steinhoff UK by about R5.2bn with the FSCA saying Steinhoff UK did not have sufficient cash flow to justify the balance.
“The contributors were also not backed by any transactions with external third parties with real economic substance,” said the FCSA.
It said in his last year as CEO he earned R243.3m making him part of the top 0.1% of individuals in the world who earned more than R55.6m per year. During his four years he received an income of R651.5m from Steinhoff International.
Jooste resigned in December 2017.
“Mr Jooste attended the FSCA interviews under notice and on dates arranged with his legal representatives. He responded to questions, but his responses, in many instances, did not amount to answering the questions put to him and of which he knew or should have known the answers,” the FSCA said.
TimesLIVE
READ MORE
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Markus Jooste fined R475m over false Steinhoff finances by FSCA
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