Thursday , August 11 2022

Steinhoff's forensic report shows that top executives have spent years profiting


Steinhoff International [JSE:SNH] announced on Friday afternoon that a "small group" of former Steinhoff managers, in agreement with managers in other companies, for years increased the value and profit of Steinhoff Group.

This is included in the review of a forensic investigation into the financial statements of the company conducted by the PricevaterhouseCoopers Advisory Service.

A retailer with headquarters in Stellenbosch published on Friday night a preview of 11 pages.

"The PvC investigation has established a communication form that shows that the executive manager of a senior management ordered a smaller number of other Steinhoff directors to comply with these instructions, often with the help of a small number of people who are not employed in the Steinhoff Group," the statement said.

She did not give the name of any of the people listed in the report.

According to the review, in order to cover up their irregularities, executive directors documented the documents.

"Transactions identified as irregular are complex, involving many entities over a number of years and were supported by documents that include legal documents and other expert opinions that, in many cases, were created after the facts and back."

PvC is committed to conducting an independent forensic investigation in a multinational retail chain at the end of 2017, following the sudden resignation of its CEO, Markus Jooste, after the company's auditors identified accounting irregularities in their financial statements.

The stock price fell after Jooste's resignation, reducing market capitalization by 200 billion.

The findings of the forensic report were postponed twice before they were handed over to Steinhoff's management earlier this month.

Read the report below:

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