Steinhoff avoids collapse, saving 120 000 jobs
It was quite a performance by Ben [La Grange]… He did say that he, essentially, has been deceived by Markus Jooste… and that Jooste and the auditors were the bad guys.Rob Rose, Financial Mail
Steinhoff has avoided the threat of collapse, thereby securing 120 000 jobs – 50 000 of them in South Africa.
That’s what a delegation from the disgraced company told Parliament on Wednesday.
The lifeline that saved the company, for now, is an agreement between the company and its creditors.
As per the agreement, Steinhoff will restructure its debt and try to rebuild value.
It also agreed to find those responsible for the scandal, and hold them to account.
Steinhoff’s former chief financial officer Ben la Grange on Wednesday told Parliament he’s sorry about the money lost through the collapse of the company’s share price.
He says he doesn’t think he deliberately did anything wrong.
La Grange painted a picture of a complex, global group with hundreds of subsidiary companies and multiple layers of reporting.
He says there was no single audit firm responsible for checking out the entire group.
La Grange says many seemingly valid transactions were done by third parties under the influence of former Steinhoff CEO Markus Jooste.
Listen to the interview in the audio below (and/or scroll down for more quotes from it).
I think there was a chronic overstatement of assets… The value inherent in Steinhoff will be a lot less… There are some good assets, even if they weren’t as good as Markus said they were…Rob Rose, Financial Mail
A small auditing company audited the European entities… Markus Jooste lobbied against it [having one auditor for the whole group]…Rob Rose, Financial Mail
The guy [Markus Jooste] is sitting in Hermanus…Rob Rose, Financial Mail
It’s a story that’ll keep unfolding… it’s going to be a gift that keeps on giving for journalists…Rob Rose, Financial Mail
Enjoy The Money Show, but miss it sometimes?
Get the best bits emailed to you daily, right after it ends:
BMW's Heritage Month campaign features a Kwesta hit which samples another band's music. Advertising expert Andy Rice weighs in.Read More
SAA's business rescue practitioners decide to suspend airline operations. Bruce Whitfield gets comment from the experts.Read More
'It's an abnormal report in abnormal times'. Paul Berkowitz (CEO, Hlaziya Solutions) makes sense of Stats SA unemployment figures.Read More
"We aim to do banking differently," says Bettr cofounder Tobie van Zyl. "The traditional banking model is going to evaporate."Read More
Kevin Lings (Chief Economist, Stanlib) opens up about his attitude to money (hopes and fears, successes and failures, etc.).Read More
Bruce Cameron discusses with Bruce Whitfield his new book on securing your retirement, despite corruption and the smashed economy.Read More
SA needs homes. Plenty of them. They can and should be constructed with wood, says Phillip Crafford (Stellenbosch University).Read More
For 300 days, punch-drunk South Africans have been learning just how bad corruption is in the country, says Ferial Haffajee.Read More
Lester Kiewit finds out from Stefanie de Saude-Darbandi what the proposed new law means for foreign business Gauteng townships.Read More
Your financial future – even if you have to start over – could be brighter than it would’ve been without the pandemic.Read More