Steinhoff International has announced that its financials for 2016 will also need to be restated. The company is already under investigation in Germany for what’s being called ‘accounting irregularities’ and clarity is still needed from the company.
Professor at the Wits School of Governance Alex van den Heever says he wonders why the government structure was not affected and how long it has been going on.
Van den Heever says that Steinhoff is being investigated by the FSB, the Parliament and the Department of Trade and Industry. He adds that there is very little information on what’s currently happening in Steinhoff.
It looks as though that the balance sheets of some of the subsidiaries of Steinhoff haven’t been correctly reflected.— Alex van den Heever, Professor at the Wits School of Governance
Van den Heever says that this may impact the leveraging position of the overall company. He adds that this kind of information might have been picked up and scrutinised by Germany first.
It’s not clear that the mechanisms of the South African government kicked in first says Van den Heever.
Listen to the implications pensioners face in the audio below…