Michael Marchant | Business Live | 27 August 2020 |
Nearly three years after Steinhoff’s finances were exposed as a sham and the company lost nearly all its value overnight, it is offering shareholders and former partners a settlement agreement.
Facing legal claims for over R130bn, Steinhoff’s management is proposing a R16bn settlement, payable in a mixture of cash and Pepkor shares.
Yet crucial reports which contain detailed information about how the fraud took place and who is responsible are still not publicly available.
How can shareholders make an informed decision if they’re being kept in the dark?
The fact is, Steinhoff shareholders are the victims of one of SA’s largest corporate frauds. For at least a decade, it is alleged, key executives and managers led by former CEO Markus Jooste engaged in self-dealing transactions to enrich themselves at the expense of the company. They covered their tracks by lying about the company’s profits.