Steinhoff collapse would shrink tax collection in SA
SA’s tax revenue will be negatively affected if Steinhoff does not survive the corruption scandal in which it has been implicated‚ says Deputy Finance Minister Sfiso Buthelezi.
He was speaking to reporters in Johannesburg on Friday following a meeting between the ministry and stakeholders‚ which resulted in a probe being launched into the retailer’s activities.
Stakeholders included the CEO Initiative‚ the Manufacturing Circle‚ the Government Employees Pension Fund‚ the JSE‚ the Public Investment Corporation (PIC)‚ the South African Revenue Service (SARS)‚ the Financial Services Board (FSB) and the Independent Regulatory Board for Auditors (Irba).
The international retailer‚ which has a dual listing on the JSE and in Frankfurt‚ has been hit by allegations of fraud and corruption‚ which led to it losing billions of dollars of its total market value.
Buthelezi said if the company collapsed‚ it would not only affect direct shareholders and pension funds‚ but also reduce tax revenue collection.
A collapse would result in thousands of workers at its numerous South African businesses losing their jobs in a country already suffering from high unemployment and inequality levels.