Steinhoff International Holdings reported former chief executive Markus Jooste to South Africa’s anti-graft police, pinning the blame for an accounting scandal squarely on the man who built the retailer into a global force.
The owner of Mattress Firm in the US, Conforama in France and Liener in Austria, among many others, referred Mr Jooste to the unit known as the Hawks on Tuesday based on its investigation into financial irregularities, acting chairman Heather Sonn told policymakers in Cape Town on Wednesday. The company has enough evidence to suggest the former CEO may have committed offences that breached the country’s corruption-fighting act, she said.
“The matter is now in the hands of the Hawks for further investigation and prosecution,” Frankfurt and Johannesburg-listed Steinhoff said in an accompanying presentation. The retailer still doesn’t know how the crisis began and a probe into its accounts led by PwC will be completed as quickly as possible, Ms Sonn said.
The move against Jooste shows Steinhoff is seeking to isolate itself from the company’s former leader, who quit when the retailer reported the accounting irregularities on December 5. Ex-chairman and biggest shareholder Christo Wiese was also at the hearing with policymakers, and said news of the scandal came to him as “a bolt from the blue” and that he had no prior knowledge of any wrongdoing. Mr Wiese, 76, has seen his net worth more than halve to $2.3 billion as Steinhoff’s shares plunged by 85 per cent.
“To detect fraud in a company is an extremely difficult, if not impossible task,” Mr Wiese said. “And it becomes more difficult when, as is alleged in this case, the CEO is directly involved.”
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Auditor Deloitte, which refused to sign off on Steinhoff’s 2017 accounts ahead of the announcement of irregularities, had previously rubber stamped financials for the two previous years that now need to be restated, said Mr Wiese, who quit Steinhoff last month after a brief stint in an executive role. “They are your first line of defence as a company board” and yet the firm “missed things”, he said.
Deloitte is fully co-operating with South Africa’s auditing-industry body regarding its investigation into the company’s handling of Steinhoff’s accounts and is confident it acted professionally and lawfully, Lwazi Bam, CEO of Deloitte Africa, said last week.
Mr Wiese and Ms Sonn were appearing at a hearing called by three parliamentary committees to deepen their understanding of the crisis and subsequent investigations by the company and regulators. The Public Investment Corporation, which manages government worker pension funds, was also present and said its 9 per cent shareholding has lost more than 16.5bn rand (Dh5.14bn) in value.
Mr Wiese became Steinhoff’s biggest shareholder when he sold Pepkor, Africa’s biggest clothing chain, to the company in 2015. Mr Jooste had previously expanded the South African retailer into Europe with acquisitions such as Conforama and Harvey’s in the UK. Steinhoff now has more than 40 brands stretching from Australia to the US, all of which are still in operation as the company shores up liquidity and retains the faith of lenders.
Dutch law firm BarentsKrans said Wednesday it’s starting legal proceedings on behalf of Steinhoff investors. Steinhoff is also under investigation by Dutch and German authorities.
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
The specs
Engine: 2.0-litre turbocharged 4-cyl
Transmission: 8-speed auto
Power: 300bhp (GT) 330bhp (Modena)
Torque: 450Nm
Price: Dh299,000 (GT), Dh369,000 (Modena)
On sale: now
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
TWISTERS
Director: Lee Isaac Chung
Starring: Glenn Powell, Daisy Edgar-Jones, Anthony Ramos
Rating: 2.5/5
Reading List
Practitioners of mindful eating recommend the following books to get you started:
Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung
How to Eat by Thich Nhat Hanh
The Mindful Diet by Dr Ruth Wolever
Mindful Eating by Dr Jan Bays
How to Raise a Mindful Eaterby Maryann Jacobsen
Signs of heat stroke
- The loss of sodium chloride in our sweat can lead to confusion and an altered mental status and slurred speech
- Body temperature above 39°C
- Hot, dry and red or damp skin can indicate heatstroke
- A faster pulse than usual
- Dizziness, nausea and headaches are also signs of overheating
- In extreme cases, victims can lose consciousness and require immediate medical attention
The pillars of the Dubai Metaverse Strategy
Encourage innovation in the metaverse field and boost economic contribution
Develop outstanding talents through education and training
Develop applications and the way they are used in Dubai's government institutions
Adopt, expand and promote secure platforms globally
Develop the infrastructure and regulations
The end of Summer
Author: Salha Al Busaidy
Pages: 316
Publisher: The Dreamwork Collective
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
HWJN
Director: Yasir Alyasiri
Starring: Baraa Alem, Nour Alkhadra, Alanoud Saud
Rating: 3/5
MEDIEVIL (1998)
Developer: SCE Studio Cambridge
Publisher: Sony Computer Entertainment
Console: PlayStation, PlayStation 4 and 5
Rating: 3.5/5
UAE athletes heading to Paris 2024
Equestrian
Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).
Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).
Cycling
Safia Al Sayegh (women's road race).
Swimming
Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).
Athletics
Maryam Mohammed Al Farsi (women's 100 metres).
ASSASSIN'S CREED MIRAGE
Developer: Ubisoft Bordeaux
Publisher: Ubisoft
Consoles: PlayStation 4&5, PC and Xbox Series S&X
Rating: 3.5/5
3 Body Problem
Creators: David Benioff, D B Weiss, Alexander Woo
Starring: Benedict Wong, Jess Hong, Jovan Adepo, Eiza Gonzalez, John Bradley, Alex Sharp
Rating: 3/5
INDIA V SOUTH AFRICA
First Test: October 2-6, at Visakhapatnam
Second Test: October 10-14, at Maharashtra
Third Test: October 19-23, at Ranchi
Avatar (2009)
Director: James Cameron
Stars: Sam Worthington, Zoe Saldana, Sigourney Weaver
Rating: 3/5
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
The specs
Engine: Two permanent-magnet synchronous AC motors
Transmission: two-speed
Power: 671hp
Torque: 849Nm
Range: 456km
Price: from Dh437,900
On sale: now
SPIDER-MAN: ACROSS THE SPIDER-VERSE
Directors: Joaquim Dos Santos, Kemp Powers, Justin K. Thompson
Stars: Shameik Moore, Hailee Steinfeld, Oscar Isaac
Rating: 4/5
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.