The Johannesburg Stock Exchange (JSE) has imposed a R15-million fine and a 20-year directorship ban on former Steinhoff CEO Markus Jooste. This decision, upheld by the Financial Services Tribunal, comes in response to Jooste's role in creating incorrect, false, and misleading financial records for the company for 2015 and preceding years, spanning 15 months ending September 2016.
Jooste was also penalized for his violations concerning the Steinhoff at Work transaction. The Tribunal found evidence of Jooste's involvement in the fraud through emails and criticized his failure to offer an explanation for financial restatements. Despite Jooste's defense team, led by Francois van Zyl, arguing his innocence, the Tribunal emphasized the seriousness of such fraudulent activities in their message to the business community.
These sanctions are part of a broader context where Steinhoff is preparing for its delisting from the JSE and Frankfurt Stock Exchange, as determined by its liquidators following a shareholder vote. The company is transitioning from public to private ownership with creditors taking control and moving the company into a trust.
Jooste was at the helm during Steinhoff's accounting fraud admission, which led to Deloitte refusing to sign off on their accounts and a 96% share value loss since 2017. He was further fined for creating a false R376 million (USD1 = ZAR18.8179) invoice allegedly paid by TG Group to a Steinhoff subsidiary and for issuing misleading financial statements.
The JSE has ordered Jooste to pay these fines for breaching listing requirements, marking one of the most significant penalties imposed on an individual in recent years. This ruling underscores the regulatory body's commitment to uphold market integrity and protect investors' interests.
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