R24 Billion Settlement to Be Paid by Steinhoff to Shareholders Following Accounting Scandal

R24 Billion Settlement to Be Paid by Steinhoff to Shareholders Following Accounting Scandal

  • The Western Cape High Court has finally reached a decision in the Steinhoff accounting scandal case
  • The company has to pay a settlement of R24 billion, which will be divided amongst various shareholders
  • The total amount of claims facing Steinhoff is R180 billion, meaning they currently only have to pay 13.3% of their total claims back

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CAPE TOWN - The Western Cape High Court has finally reached a decision in the Steinhoff accounting scandal. As a result, the company has to pay a settlement of R24 billion, which will be divided amongst various shareholders.

After years of court appearances and legal disputes, this decision has been ruled, both in the Netherlands, where Steinhoff's international holdings are based, and South Africa.

According to EWN, the deadline for payment has not been clearly stipulated. However, the total amount of claims facing Steinhoff is R180 billion, meaning they currently only have to pay 13.3% of their total claims back.

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Steinhoff, Markus Jooste, accounting scandal, legal dispute, claim, settlement
Steinhoff has been ordered to pay an R24 billion settlement to their shareholders. Image: Waldo Swiegers/Bloomberg via Getty Images
Source: Getty Images

Implications for Markus Jooste and next steps for Steinhoff

Markus Jooste, the former CEO of Steinhoff, is implicated in the accounting scandal. Steinhoff's shareholders and employees alike have testified before the court to explain his role in the scandal. Whether or not Jooste will be prosecuted is yet to be determined.

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SABC News reports that many pension funds invested in Steinhoff in good faith, only for it to come to light in December 2017 that the shares did not exist due to accounting fraud, causing many people to lose money from their pensions.

The settlement will come from funds recovered by Steinhoff and the revenue from selling some of their companies, such as PEP.

Reactions to Steinhoff settlement

@SandileMacamo asked:

@Khomojoe remarked:

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"108 bn of non-existing money just digits in a computer. People are crooks!"

@dexteraps believes:

"#Steinhoff #SteinHeist is a classical example of "white" privilege and what we deem 'white collar' Crimes . How easy it is to get away with anything if you're just not black."

@ThandoSidimba asked:

@thapedi_fab said:

"SA's largest corporate fraud and still no orange overalls."

R21 billion later and no arrests have been made in Steinhoff case

In earlier news about this case, Briefly News reported that since the 2017 Steinhoff fraud scandal was uncovered and billions were wiped off the PIC, no arrests have been made.

With over 200 witnesses and heaps of evidence, the police have yet to make an effort to bring anyone to book. The company overstated its financial results and position by as much as R100 billion.

In contrast to the VBS scandal where police moved with lightning speed, the Steinhoff case is moving at a glacial pace.

Source: Briefly News

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