NPA confirms Steinhoff funding probe into its own scandal
Steinhoff paid PwC directly for the work they did in their investigation, which was then used to help the official investigation.
The National Prosecuting Authority (NPA) has confirmed that the state benefitted from the fact that beleaguered company Steinhoff paid for its own private investigation into its financial dealings.
The retailer was plunged into crisis in 2017 amid allegations of fraud and corruption by senior executives.
The company’s stock dropped by more than 61% amid allegations of fraud against the company’s CEO, Markus Jooste.
The Hawks are investigating the matter and this week Justice Minister Ronald Lamola denied accusations that South African law enforcement agencies have stopped looking into the collapse of the multi-national company.
ALSO READ: NPA probing Steinhoff collapse ‘without fear or favour' - Lamola
The NPA's Sipho Ngwema said on Friday that Steinhoff has, effectlvey, been paying itself for the investigation into its affairs.
"Indeed the state did receive some generosity from Steinhoff given the fact that there was a forensic investigation that was done by PricewaterhouseCoopers (PwC) who was the forensic investigator into Steinhoff," said Ngwema.
Ngwema explained that in PwC's investigation "a lot of work had to be done over 5 countries" and that this helped the state in preparing its case against Steinhoff.
Steinhoff paid PwC directly for the work they did in their investigation, which was then used to help the official investigation.
"Steinhoff in this matter are complainants and therefore their interest with the sate is aligned," Ngwema insisted.
"If the company needs to be added to the list of suspects, they will be added," he noted.
Ngwema added that the Hawks have"insulated" PwC from the investigation to "ensure the integrity of the investigation remains intact."
The Johannesburg Stock Exchange (JSE) has already hit Steinhoff with a R13.5 million fine for breaching its listing requirements.