The Financial Sector Conduct Authority (FSCA) says a 'discount' on a R 1.5 billion fine issued to Steinhoff is because of the affordability of the fine to the company.
The company has been accused of misrepresenting its finances to the market.
Steinhoff has been let off most of the fine and is now required to pay a R53 million penalty with the FCSA noting the retailer's current financial status and co-operation with authorities.
FSCA divisional executive for investigations and enforcement Brandon Topham explains.
If you look at the financial statements you will see that it is actually insolvent and there is just no way it would have been able to pay a fine of R1.5 billion.— Brandon Topham, Divisional executive for investigations and enforcement - FSCA
Then we also had to consider the fact that the people that would be ultimately paying the fine are the shareholders, who have already lost 98 percent or more of their investment. So it is almost like a double whammy.— Brandon Topham, Divisional executive for investigations and enforcement - FSCA
But at the same time we have to remember that it is important for us to deter this type of negligent behaviour on the part of entities and we can't just let them off completely. So even the R53 million will be the highest fine paid in South Africa.— Brandon Topham, Divisional executive for investigations and enforcement - FSCA
Bare in mind that the company itself didn't do this, so the perpetrators behind the actual misrepresentation, they are still on our radar and we are busy with investigations into that.— Brandon Topham, Divisional executive for investigations and enforcement - FSCA
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