Gigaba: Steinhoff investors 'rightfully concerned' over irregularities
Finance Minister Malusi Gigaba has expressed concern over the fraud allegations levelled against Steinhoff.
The CEO of Steinhoff International Markus Jooste resigned on Tuesday amid an investigation into accounting irregularities at the company.
Gigaba has now moved to ensure investors that the alleged fraud and corruption at the food and clothing giant will be investigated.
Gigaba's spokesperson, Mayihlome Tshwete, says the minister supports the decision by the Financial Services Board (FSB) to conduct an independent investigation.
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"The minister is mindful that many retirement and savings funds may be adversely affected by the loss in the value of Steinhoff shares. Members of retirement funds should therefore be reassured that current regulations limit the extent to which any one fund may be invested in any one company."
The Public Service Association (PSA), which represents over 230 000 government employees, estimated that the pension fund lost more than R12.5 billion of the money it has invested in Steinhoff.
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"The minister asked the PSA to give a report on the exposure and the losses it occurred as a result of the reports. It's important to note that the exposure of the Public Investment Corporation (PIC) investments are quiet limited.
"However, anyone would be rightfully concerned about the losses that pension holders must suffer," says Tshwete.