The SA Institute of Chartered Accountants (Saica) has charged Steinhoff’s former CEO, Markus Jooste, with four counts of misconduct relating to his role at the global furniture retailer.
Saica announced it has charged Jooste with conduct that “is discreditable, dishonourable, dishonest, irregular or unworthy, or which is derogatory to the institute”, according to its professional conduct standards.
This follows Jooste’s attempt to resign his membership in June 2019, but which Saica resolved not to accept.
Besides charges relating to representing to various parties that Steinhoff’s financial statements were accurate and complete, Saica is also going after him for conduct relating to his private investment vehicle, Mayfair Speculators.
Just months before his departure, Jooste transferred all the assets in Mayfair out of the company via a dividend in specie — a transfer of assets from one company to the other. In hindsight, this was done — according to Mayfair’s creditors — to remove the assets from the reach of the banks that lent to it.
Jooste’s departure in December 2017 from the company he helped turn into a global furniture manufacturer and retailer was accompanied by revelations that the company would investigate “accounting irregularities”.
The news triggered a precipitous decline in the Steinhoff share price from which it never recovered. After an expensive and lengthy forensic investigation, which has not seen the light of day besides a brief overview, Steinhoff found that its accounts had been overstated by as much as R105bn.
Jooste has twenty-one days to respond to the charges. Once received, the charges and response will be brought before Saica’s professional conduct committee.
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