Steinhoff’s collapse is a stark reminder of the need for stronger corporate governance and accountability.
Last week, a Dutch court approved Steinhoff’s debt restructuring plan, in terms of which the company will be delisted and transferred to a trust, in which creditors — mainly hedge funds — will extend debt due in June to 2026 and gradually sell off its assets.
Shareholders will get nothing. That is a painful outcome for people such as Christo Wiese who had backed Steinhoff’s transformation from a small SA furniture outfit into a household goods behemoth straddling four continents.
Steinhoff was able to conceal its fraud for years. Its board failed to exercise proper oversight and due diligence. The regulators, such as the JSE and the Financial Sector Conduct Authority, were slow to act and impose sanctions.
The shareholders did not ask enough questions or demand more transparency. The outcome is a huge loss of value, trust and reputation for SA’s business sector.
The Steinhoff saga is a lesson for SA’s corporate sector to improve its governance standards and practices. It is also a wake-up call for all stakeholders — from regulators to shareholders — to play their role in ensuring that companies operate with integrity and transparency.
Steinhoff’s story is not just a tale of greed and fraud. It is also a story of failure and negligence. It is a story that should not be repeated.
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