The Johannesburg Stock Exchange (JSE) plans to fine Steinhoff International Holdings NV's former CEO Markus Jooste R15m for violating listing rules and submitting false financial statements.
The JSE has also barred Jooste from holding office in a listed company for 20 years.
The move comes almost five years after the firm’s near collapse and is the second censure of a director at the company after former CFO Ben la Grange was fined R2m.
Steinhoff lost 98% of its market value after auditors refused to sign off on financial statements in December 2017. Forensic investigators from PwC later confirmed that €6.5bn (R118.6bn) in fictitious or irregular income had been recorded at Steinhoff between 2009 and 2016, making it South Africa’s largest known fraud.
Jooste has told the JSE he doesn’t agree with its findings. On December 14 he approached the Financial Services Tribunal for an order suspending the JSE’s decisions. While the tribunal has dismissed Jooste’s application, the payment of the fines is still being considered.
The JSE said it will continue to oppose the reassessment application and awaits the tribunal’s decision over the fines it plans to impose.
There are numerous investigations around the world into Steinhoff, which owns Poundland in the UK and part of Mattress Firm in the US, and had been Europe’s second largest furniture retailer after Ikea. Jooste is among four people who will go on trial in Germany next year on charges of accounting fraud.
A fine against Jooste by the Financial Sector Conduct Authority for insider trading was in December cut by almost 90% to R20m.
Steinhoff plans to cease being a listed company this year.
More stories like this are available on bloomberg.com
JSE seeks to fine Steinhoff’s ex-CEO Markus Jooste R15m
Image: Bloomberg
The Johannesburg Stock Exchange (JSE) plans to fine Steinhoff International Holdings NV's former CEO Markus Jooste R15m for violating listing rules and submitting false financial statements.
The JSE has also barred Jooste from holding office in a listed company for 20 years.
The move comes almost five years after the firm’s near collapse and is the second censure of a director at the company after former CFO Ben la Grange was fined R2m.
Steinhoff lost 98% of its market value after auditors refused to sign off on financial statements in December 2017. Forensic investigators from PwC later confirmed that €6.5bn (R118.6bn) in fictitious or irregular income had been recorded at Steinhoff between 2009 and 2016, making it South Africa’s largest known fraud.
Jooste has told the JSE he doesn’t agree with its findings. On December 14 he approached the Financial Services Tribunal for an order suspending the JSE’s decisions. While the tribunal has dismissed Jooste’s application, the payment of the fines is still being considered.
The JSE said it will continue to oppose the reassessment application and awaits the tribunal’s decision over the fines it plans to impose.
There are numerous investigations around the world into Steinhoff, which owns Poundland in the UK and part of Mattress Firm in the US, and had been Europe’s second largest furniture retailer after Ikea. Jooste is among four people who will go on trial in Germany next year on charges of accounting fraud.
A fine against Jooste by the Financial Sector Conduct Authority for insider trading was in December cut by almost 90% to R20m.
Steinhoff plans to cease being a listed company this year.
More stories like this are available on bloomberg.com
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Jooste yet to pay for insider trading
At last, Jooste denied the luxuries he doesn’t deserve
Speed up prosecutions of corporate fraudsters, says Reserve Bank
Ex-Steinhoff CEO Markus Jooste set for fraud trial in Germany next year — report
MID-TERM BUDGET | Possible Steinhoff criminality referred to law enforcement, says Lesetja Kganyago
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