Steinhoff backlash intensifies

Steinhoff backlash intensifies

The Black Business Council (BBC), Democratic Alliance (DA) and SA Clothing and Textile Workers' Union (SACTWU) have expressed shock at the alleged fraud at retail giant Steinhoff. 

Steinhoff Int Holdings
Steinhoff International Holdings

BBC secretary general George Sebulela says besides condemning Steinhoff corrupt and unethical behaviour, they are equally alarmed by the lack of transformation at the top echelons of the company.

 

''We are aware that in the entire executive committee of Steinhoff, there is neither any single black person nor a black woman.

 

''In our view, this lack of transformation and diversity has blinded this group of white males and a boys’ club not to pay attention to the critical issues of corporate governance.

 

''Behaviour like these can only negatively affect the way our country is viewed by international investors.''

Sebulela says the fraud at Steinhoff puts poor and innocent pensioners, who have already lost more than R10 billion rand, at risk.

 

''The BBC  will engage with both Steinhoff and the Public Investment Corporation [PIC] in order to ensure that the board and executive of Steinhoff and other companies where the PIC is invested, reflect the demographic of the country.''

 

Meanwhile, the DA says their main concern is with the audit firms once again overlooking the “accounting irregularities''.

 

The party will request an investigation into whether Deloitte DV in Germany and Deloitte South Africa complied with international audit standards in its audits of Steinhoff.

 

The DA's David Maynier says because this matter extends to a number of jurisdictions, he has requested investigations by three regulators.

SACTWU says they are deeply concerned about the implications this could have on workers.

 

The union's Etienne Vlok says they have requested an urgent meeting with the company to discuss the crisis.

 

Moody's cut Steinhoff's credit rating by four notches to junk status.

 

The credit ratings agency downgraded Steinhoff by four notches to B1, and placed the global retailer's rating on review for further downgrade.

 

Moody’s said in a statement late on Thursday that it had downgraded the issuer ratings of Steinhoff International Holdings and Steinhoff Investment Holdings, and the senior unsecured notes rating of Steinhoff Europe to B1 from Baa3.

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