Deputy Editor at Financial Mail, Sikonathi Mantshantsha says the directors of Steinhoff need to call a spade a spade.
Christo Wiese resigned as chairperson of Steinhoff following the latest setback for the retail group in the throes of an accounting scandal.
They are saying there are irregularities, there are accounting problems. A fraud is a fraud by any other name, that's what it is and that's not what they are calling it.— Sikonathi Mantshantsha, Deputy editor at Financial Mail
Mantshantsha says Steinhoff will be re-auditing its financials to relook at what Markus Jooste has been cooking for the past two years.
He questions the credibility of the chartered accountants that sit on the Steinhoff board and the executives for not noticing what was happening under their very noses.
Here is one thing that amazes me - the collective ability of the whole board not to see these mistakes. At Steinhoff you have 6 chartered accountants plus Markus Jooste and at an executive level, you have at least 4 chartered accountant whose job is to handle the financial affairs of the company including the reporting.— Sikonathi Mantshantsha, Deputy editor at Financial Mail
All of them were hit with this massive forgetfulness that they didn't notice accounting fraud for two years committed on their company.— Sikonathi Mantshantsha, Deputy editor at Financial Mail
To hear more analysis from Sikonathi Mantshantsha, listen below:
This article first appeared on CapeTalk : 'Accounting irregularities for who? Fraud is what it is, Steinhoff!'