The South African Reserve Bank has seized millions belonging to former Steinhoff executive Stephanus Grobler.
Grobler is facing criminal charges over the massive fraud that sank the company in what became SA’s largest corporate fraud in history.
In a Government Gazette on Friday, the central bank said it had seized money belonging to Grobler, who was arrested in March over allegations including fraud, a pattern of racketeering activities and contravention of the Financial Markets Act.
Grobler, who also uses the name Stéhan, was arrested a day after erstwhile CEO Markus Jooste committed suicide in Hermanus seven months ago.
The Reserve Bank seized R871,000 held in Momentum Wealth and R66m loan accounts declared by Grobler in an outfit called Suez Beleggings, as well as several small amounts held with different entities. The money was frozen over contraventions of exchange control regulations.
Steinhoff is demanding Grobler pay back nearly R300m he was paid in salaries, bonuses and other incentives.
Grobler, who worked for the group in different capacities for 19 years, is facing demands of R238m from Steinhoff Africa Holdings, €1.3m (R24.8m) from Steinhoff Europe Group Services and €315,000 (R6m) from Steinhoff Europe.
In July the Reserve Bank seized more than R6bn from several Ibex investments, formerly Steinhoff accounts, having frozen such funds as it conducted its investigations into the company’s cross-border transactions
In their particulars of claim, the entities said the money paid to Grobler during his stay with the group, in particular bonuses and share incentives, were paid out in the false belief the financial statements of the group accurately reflected its true financial position, as well as its profitability and performance.
The group said in light of the fraud at the company, which saw its asset base inflated, it has been impoverished by the payments to Grobler and he was unjustifiably enriched in the process. The lawsuit was initiated in May 2023.
Former Steinhoff CFO Ben la Grange was this month sentenced to 10 years in prison, five of which were suspended, after pleading guilty to one charge of fraud in the Steinhoff saga.
He promised to testify against Grobler, who is set to appear in court again next year.
The Reserve Bank has been reining in people linked to the looting of Steinhoff and the company itself.
In July the bank seized more than R6bn from several Ibex investments, formerly Steinhoff accounts, having frozen such funds as it conducted its investigations into the company’s cross-border transactions.
According to the bank, the R6bn plus interest will be forfeited to the state. SA’s exchange regulations permits the National Treasury to attach assets linked to or suspected of being linked to contraventions of the regulations. The more than R6bn seized from Ibex will thus be transferred to the National Revenue Fund.
The seizure came just months after Ibex completed the successful placing of 500-million Pepkor Holdings shares, raising total proceeds of R9bn. On completion of the placing, Ibex’s interest in Pepkor reduced from 43.7% to about 30.2%. Ibex is legally challenging the seizure.
In April the Reserve Bank seized R60m in cash and property belonging to Berdine Odendaal, who is said to have been Jooste’s lover. The central bank also seized cash held in Odendaal’s five accounts with Absa, Capitec and Standard Bank amounting to R42m. It also confiscated her R18m property in Paarl’s exclusive Val de Vie estate.
The move came as no surprise as the central bank stated previously it believed R60m was transferred from Steinhoff International businesses via Jooste’s Mayfair Speculators to Odendaal from 2011 to 2015 in transactions that contravened exchange control regulations.
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