Pay back the money: Markus Jooste, Steinhoff edition

In an unprecedented move, Steinhoff’s former chief executive Markus Jooste and chief financial officer Ben la Grange could be ordered to pay back hundreds of millions to the company.

The Financial Times reported on Tuesday that Steinhoff had filed papers in the Western Cape high court in an attempt to recoup R870-million from Jooste and R272-million from La Grange. These amounts include salaries and bonuses awarded to the pair.

The company is also allegedly demanding legal costs and interest from the former executives.

According to the publication, Jooste has 10 days to respond to the court papers and La Grange has one month.

READ MORE: Jooste: I did not know about accounting irregularities

Jooste abruptly resigned from his position in December 2017 amid allegations of ‘accounting irregularities’. His resignation was followed by Steinhoff commissioning auditing firm PricewaterhouseCoopers (PwC) to investigate the accounting scandal.

The revelation led to a crash in the company’s share price, which reportedly declined by about 90%, and wiped out billions of rands of value for investors.

In its report released in March, PwC revealed that a range of “fictitious and/or irregular” transactions inflated the profits and assets of the group by over €6.5-billion between 2009 and 2017. A few executives, including Jooste and La Grange, were implicated.

The investigation also found “a pattern of communication” showing that executives “instructed a small number of other Steinhoff executives to execute their instructions, often with the assistance of a small number of persons not employed by the Steinhoff Group”.

READ MORE: Fictitious and irregular deals key to Steinhoff heist

In September last year, Jooste told the parliamentary committees on finance, trade and industry and public service and administration that he did not know about “accounting irregularities” at the global general household retailer.

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Joshua Cohen’s ‘The Netanyahus’ wins the Pulitzer Prize for fiction

The Pulitzer Prize awards grants another controversial award to a book that mixes both fiction and non-fiction

Court hears text message irrelevant to Mkhwebane’s legal fortunes

Advocate Andrew Breitenbach, appearing for parliament, said the message he received did not advantage his client and was no cause to suspend the impeachment inquiry against the public protector

Tazné van Wyk murder trial: accused twin sister brought in...

Murder accused’s twin sister tells court of interacting with the accused two days after the deceased went missing

Those who attack funerals self-identify as pariahs

What happens in Israel and Palestine does not affect Israelis and Palestinians, alone. It fuels a global fault-line of mistrust, suspicion, intolerance and violence
Advertising

press releases

Loading latest Press Releases…
×