FSCA fines Markus Jooste R475m over 'false' Steinhoff statements
Updated | By Anastasi Mokgobu
The Financial Sector Conduct Authority (FSCA) has slapped former Steinhoff CEO Markus Jooste with a R475 million fine for filing false Steinhoff financial statements.
Steinhoff became engulfed in a huge scandal in 2017 when it was investigated on suspicion of fraud, with a reported six-billion-euro hole in its accounts.
Jooste resigned after the scandal broke but denied all knowledge of accounting fraud.
The Johannesburg Stock Exchange fined Steinhoff R13.5 million in October 2022 for breaching listing requirements, including publishing "false and misleading" information.
In a statement released on Wednesday afternoon, the FSCA says the penalty was issued after a thorough investigation.
The investigation found that Jooste and Steinhoff's former European finance chief, Dirk Schreiber, published statements about Steinhoff International Holdings Limited and Steinhoff International Holdings NV, which they knew or ought reasonably to have known were false, misleading, or deceptive.
The penalty includes a contribution of R10 million to reimburse the FSCA for reasonable costs incurred during the investigation and interest at 11.75%.
The FSCA says it considered the need to deter similar behaviour in the market.
For Schreiber's penalty, the FSCA says he entered into a leniency agreement.
"In terms of the leniency agreement, the FSCA, despite finding that Mr Schreiber contravened section 81(1)(a) and (b) of the FMA, will not impose an administrative penalty on Mr Schreiber.
“The Authority is satisfied that it may publish the leniency agreement as per section 156(4) of the FSR Act.
“The Authority is continuing with further investigations into similar contraventions of section 81(1)(a) and (b) of the FMA by other individuals," it said.
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