Former Steinhoff CEO Ordered to Pay R15m for Stock Exchange Violations

Former Steinhoff CEO, Markus Jooste, has been ordered by the Johannesburg Stock Exchange (JSE) to imminently pay up two maximum fines amounting to R15-million. The fines were imposed following Jooste's contravention of the stock exchange’s listing requirements, essentially barring Jooste from directorship of any listed entity for 20 years.

The JSE initially imposed these sanctions in January, against which Jooste appealed via the Financial Services Tribunal, a body responsible for reviewing financial sector decisions. However, Jooste's appeal was unsuccessful, leading to the immediate enforcement of the JSE’s imposed penalties.

This development comes just days ahead of Steinhoff’s anticipated delisting from the JSE and Frankfurt Stock Exchange. The company's liquidators have organised the delisting for October 13, transitioning Steinhoff from a publicly listed and owned company to a privately owned entity. Consequently, ownership will also transition to the creditors to whom the company owes multiple billion euros and rands.

Jooste held the Steinhoff leadership role when Deloitte, the company's auditors, refused to validate the accounts due to suspected fraud. Subsequent admission of such fraud induced significant losses for Steinhoff’s shareholders, contributing to a whopping 96% loss in share value since 2017.

Jooste was fined by the JSE for fabricating a R376-million invoice, which artificially boosted the retailer’s business financials. Jooste's defence team failed to sway the Financial Services Tribunal, which ruled him responsible for the company's financial downfall.