Former head of treasury and executive director at Steinhoff, Stéhan Grobler, appeared in the Pretoria special crimes court on Friday, facing charges of racketeering and fraud.
On Thursday, Grobler's trial was separated from that of his convicted co-accused, former Steinhoff CFO Ben la Grange, who reached a plea agreement with the state and was sentenced to five years of effective imprisonment. The state informed the court that La Grange’s statement would be used in Grobler’s trial. La Grange has turned state witness and will testify against Grobler.
Grobler, however, has consistently denied the allegations, maintaining his innocence and expressing confidence in clearing his name.
The matter was postponed to February 14 for further investigations.
State prosecutor Dries van Rensburg informed the court on Friday the state expected to receive a final audit report from PwC on Steinhoff’s financial operations by the end of November. He further indicated the case would be transferred to the Pretoria high court, where pretrial proceedings would commence.
In addition to his roles within Steinhoff, Grobler served on the boards of several holding companies and was a member of the executive committee of Steinhoff International Holdings NV, the Netherlands-based parent company.
The indictment highlights Grobler’s close association with Steinhoff’s former CEO Markus Jooste, now deceased, and with La Grange. “The relationship between Jooste, Grobler and La Grange regarding the Steinhoff Group was one of trust,” the indictment states.
It alleges that as head of treasury, Grobler played a pivotal role in the company’s financial strategies, exploiting his position of trust to facilitate fraudulent schemes that ultimately contributed to Steinhoff’s collapse.
Grobler faces nine charges, including racketeering, fraud, violations of the Financial Markets Act, falsifying accounting records and failing to report criminal activity to the police. Central to these allegations is his alleged involvement in fabricating transactions designed to mislead investors and stakeholders about Steinhoff’s true financial health.
The state asserts that Grobler, along with other senior executives, “actively associated themselves with the common purpose” of misrepresenting Steinhoff’s operating profits and assets. Grobler is alleged to have been involved in the TG Group fraud and the BNP Paribas commission transactions — which the state claims generated nearly R21bn in fake profits between 2014 and 2016, inflating Steinhoff’s market value and deceiving investors while personally benefiting the accused.
Earlier in 2024, his bail was set at R150,000 with strict conditions, including the surrender of his passports and firearms and regular check-ins at the Brooklyn police station. While the prosecution opposed bail, citing the seriousness of the charges and the risk of flight, magistrate Nicca Setshogoe granted bail under conditions aimed at ensuring Grobler’s availability for trial. The charges stem from Steinhoff’s financial misconduct between 2014 and 2017, which culminated in the company's collapse in December 2017.
Once a global retail giant listed in both Germany and SA, Steinhoff’s share price plummeted 90%, wiping out more than R230bn in market value. The scandal was driven by inflated earnings and asset values, resulting in R100bn in fictitious sales.
Steinhoff’s collapse eventually led to its liquidation in 2023.
Jooste avoided prosecution after allegedly taking his own life In March.
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