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<p>Now if there is one company to keep a close eye on, it’s Steinhoff. The company which was somewhat marred by controversy in 2017, seems to be fighting to get back up. The company has been selling assets to try quash its debt to claimants after the company was embroiled in an accounting fraud scandal. Steinhoff CFO, Theodore de Klerk joins CNBC Africa for more.</p>


Steinhoff: Is bankruptcy off the table?


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s market regulator has fined retailer Steinhoff a record 53 million rand ($3.6 million) for making “false, misleading or deceptive statements” to the market, the company said on Thursday.</p>



<p>Steinhoff disclosed the hole in its accounts in December 2017 which shocked investors and wiped more than 200 billion rand off its stock market value.</p>



<p>The company said the penalty would have been 1.5 billion rand, but was reduced in recognition of the fact that the fraud was perpetrated by former employees and that the company had cooperated with regulators.</p>



<p>“Even after this reduction it remains the largest single fine ever imposed by the FSCA,” Steinhoff said in a statement, quoting the regulator.</p>



<p>The Financial Sector Conduct Authority (FSCA) ruled that multiple, significant restatements of the company’s accounts after December 2017 supported the conclusion that Steinhoff failed to meet its obligations under the Financial Markets Act.</p>



<p>Steinhoff CEO Louis du Preez said there were no more further FSCA enforcement actions outstanding against the Steinhoff.</p>



<p>“We are pleased that the matter has now been brought to a conclusion and that the FSCA has recognised our full co-operation with the investigation,” said Preez.</p>



<p>An independent report by PwC released in March found Steinhoff had overstated profits over several years in a $7.4 billion accounting fraud involving a small group of top executives and outsiders.</p>



<p>($1 = 14.6256 rand)</p>



<p>Reporting by Tanisha Heiberg; Editing by Mark Potter</p>


Steinhoff has been fined R53 million for misleading markets

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<p>Bernard Mostert, former Tekkie Town CEO and current CEO of Mr.Tekkie joins CNBC Africa to disclose the reasons behind the judgement which stopped Steinhoff from selling its shares in Tekkie Town. The Judge finally ruled that Tekkie Town did and does not exist for debt servicing.</p>


Why Steinhoff is barred from selling its shares in Tekkie Town

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<p>Is the grass finally greener for Steinhoff investors? Joining CNBC Africa for more is Zwelakhe Mnguni, Chief Investment Officer, Benguela Global Fund Managers.</p>


This fund manager never invested in Steinhoff, here’s why they won’t touch it

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<p>Global retailer Steinhoff saw its share price soar after its Chief Executive Officer, Louis du Preez presented its restructuring plan. He warned that total debt of over 9 billion euros is “too high” and needs to be urgently addressed. He joins CNBC Africa for more.</p>


Louis du Preez on why he believes Steinhoff has a future


<p>CAPE TOWN (Reuters) &#8211; Steinhoff will struggle to turn a profit in coming years despite strong turnover as it restructures following an accounting scandal, the South African retailer said in a presentation to investors on Tuesday.</p>



<p>Steinhoff in July reported a 356 million euro ($401 million) half-year loss from continuing operations.</p>



<p>Since flagging holes in its accounts in December 2017, estimates of losses stemming from alleged accounting fraud are now as high $7 billion.</p>



<p>Reporting by Wendell Roelf; writing by Mfuneko Toyana; editing by Jason Neely </p>


Steinhoff says it will struggle to turn a profit in coming years

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<p>Steinhoff CEO, Louis du Preez unpacks the embattled retailers’ restructuring plan.</p>


Steinhoff unveils restructuring plan


<p><em>Benguela Global Fund Managers says that Omnia’s rising debt levels and ballooning working capital requirements were among the reasons it advised clients to dump the stock. Having sold out of Omnia at R68 a share, the fund manager is now alleging that management is destroying shareholder value and it is not adhering to ESG standards. CNBC Africa’s Karabo Letlhatlha sat down with Karl Givers, Head of Research, Benguela Global Fund Managers</em>. <em><strong>WATCH</strong></em>: <a href="http:// https://www.cnbcafrica.com/videos/2019/07/26/shareholders-approve-omnia-share-sale/">As Omnia&#8217;s shareholders approve restructuring plan, here&#8217;s why Benguela was advising clients to dump the stock</a></p>



<p><em>CNBC Africa offered Omnia a right of reply. This is what its CEO Adriaan de Lange had to say:</em></p>



<p>Thank you for offering Omnia the right of reply to the Benguela allegations. We prefer to engage directly with our shareholders and have been doing so on a regular basis, including with Benguela which is not currently a shareholder. The JSE has also been included in this engagement process.  We have provided extensive and comprehensive answers to the first lengthy letter received and are in the process of answering the 58 page letter received two days ago.  We are also arranging a meeting with Benguela and are prepared to engage with any shareholder who has questions. </p>



<p>We would like to give you some high level
responses to the allegations and would also like to emphasise that Omnia is not
comparable to Tongaat or Steinhoff. Omnia has published its results timeously
with an unqualified audit report. In fact, at this point, Omnia is in a solid
position, with a robust business, a short term liquidity bridge loan and the
98% approval by shareholders yesterday of the R2 billion rights
issue.&nbsp;&nbsp; </p>



<p><strong>Board Independence</strong></p>



<p>The Board has assessed the independence of the
non-executive directors and is satisfied that all demonstrate the required
levels of independence to execute their duties.&nbsp; Depending on their
tenure, members retire annually and stand for re-election at the AGM at which
all shareholders have a vote. Rod Humphris, the non-independent chairman for
the past 2 years has recently retired from the board and has been replaced by
the lead independent director, Ralph Havenstein. </p>



<p><strong>Remuneration</strong></p>



<p>With approval of shareholders, Omnia has long
term and short term incentive plans for management to guard against short term
pursuit of revenue at long term cost.&nbsp; The current schemes are under
review and shareholders will be engaged before they are finalised. </p>



<p><strong>Audit Firm</strong></p>



<p>Omnia is aware of and supports audit firm
rotation which will be mandatory from 2023. </p>



<p><strong>Allocation of capital</strong></p>



<p>Omnia concluded the acquisitions of Umungo and
Oro Agri after in-depth research, thorough and intensive due diligence,
including comprehensively investigated historic earnings levels, board
engagement, independent finance, legal and tax advice, and valuation. The
expected level of earnings did not immediately materialise and was exacerbated
by the economic headwinds which ultimately culminated in the decision to
de-gear and restructure the debt facilities.</p>



<p><strong>Misleading
communication</strong></p>



<p>Our SENS on 23 April
was factually correct at that time: Omnia was involved in restructuring its
debt, but the nature and extent was not yet clear, no repayment of any debt was
required and there was no requirement for recapitalisation. The announcement
did not provide assurance that there would not at a future time be a need for
recapitalisation. The SENS announcement clearly stated that once the process
was complete, the outcome would be communicated. The 30 May announcement, at the conclusion of
the process, contained the decision to announce a rights issue.&nbsp; </p>



<p>We acknowledge that we experienced a
series of negative factors:&nbsp; severe weather patterns, challenging
financial year, difficult operating environment.&nbsp; We had used retained
earnings to grow and found ourselves exposed.&nbsp; This led to fast
accumulation of debt.</p>



<p>As noted in our recent results, we
have implemented a targeted plan. We have new systems and revised processes,
improved risk management and governance.&nbsp; We will continue to review our
business structure, streamline operations, extract more value and reduce costs.
We believe in the intrinsic value of the Omnia business. </p>



<p><strong>ADRIAAN DE LANGE</strong></p>



<p><strong>CEO: OMNIA</strong></p>


Omnia’s CEO: Why we are not comparable to Steinhoff or Tongaat

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<p>Steinhoff has posted a loss of R8.9 billion for their six month financial performance ended March. The global retail conglomerate also reported a revenue jump from continuing operations of 2.9 per cent. Karl Gevers, Portfolio Manager at Benguela Investments joins CNBC Africa for more.</p>


Steinhoff: Investable or a dead horse?


<p>JOHANNESBURG (Reuters) &#8211; South African retailer Steinhoff reported a 356 million euros ($401 million) half-year loss from continuing operations on Friday, as the damage from a massive accounting scandal drags on.</p>



<p>Steinhoff first flagged holes in its accounts in December 2017 — the warning shot for an accounting fraud since put at over $7 billion — shocking investors that had backed its transformation from a small South African outfit to a discount furniture retailer spanning four continents.</p>



<p>The owner of Mattress Firm Inc in the United States, Fantastic chains in Australia and Conforama in France said the loss from continuing operations came in at 356 million euros in the six-months ended March compared with a loss of 392 million euros a year earlier.</p>



<p>Steinhoff, which is also listed in Frankfurt, blamed the loss on the cost of advisors and professional fees as it cleans up its balance sheet.</p>



<p>Advisory fees for the period amounted to 82 million euros, which included 11 million euros for forensic investigation and technical accounting support, and 30 million euros for creditor adviser fees.</p>



<p>“While every effort is made to limit costs, we expect this to remain our reality for some time,” the retailer said in its 97-page half-year unaudited report.</p>



<p>Net sales from continuing operations increased by 3% to 6.8 billion euros from 6.6 billion euros, with strong contributions from Pepkor Europe and Pepkor Africa.</p>



<p>At 1105 GMT, shares in Johannesburg-listed Steinhoff jumped 4.72%, while in Frankfurt they were up 8.9%.</p>



<p>($1 = 0.8885 euros)</p>



<p>Reporting by Nqobile Dludla; Editing by Mark Potter and Louise Heavens</p>


Scandal-hit Steinhoff reports $400 million loss in half-year earnings


<p>JOHANNESBURG (Reuters) &#8211; Steinhoff International said on Tuesday it had started legal proceedings against former Chief Executive Markus Jooste and ex-finance chief Ben La Grange to recover certain salary and bonus payments they got prior to 2017.</p>



<p>The South African retailer’s CEO Louis du Preez told lawmakers in March that Jooste, la Grange, along with six other people, were involved in inflating Steinhoff profits and asset values over several years, forcing the firm to restate years of financials.</p>



<p>Steinhoff first flagged holes in its accounts in December 2017 — leading to the exposure of a more than $7 billion accounting fraud — shocking investors who had backed its rise from a small South African outfit to a discount furniture retailer straddling four continents.</p>



<p>Steinhoff, which is also listed in Frankfurt, said it launched the legal proceedings on June 19 in the Cape Town High Court. Jooste’s lawyer, Callie Albertyn, could not be immediately reached for comment. La Grange’s lawyer was also not available for immediate comment.</p>



<p>In its delayed 2017 annual report, the owner of Mattress Firm in the U.S. and furniture retailer Conforama in France, said that Jooste received a bonus payment of 2.1 million euros ($2.37 million) in March and May 2017. It said 500,000 euros of that amount was neither proposed by the human resources and remuneration committee nor approved by the supervisory board.</p>



<p>Steinhoff also said it received summons on June 21 from Barents &amp; Krans on behalf of Hamilton B.V, initiating legal proceedings against the retailer and others “for declaratory relief relating to currently unquantified damages arising from alleged wrongful acts”.</p>



<p>($1 = 0.8856 euros)</p>



<p>Reporting by Nqobile Dludla; editing by Jason Neely and Emelia Sithole-Matarise</p>


What you need to know about Steinhoff seeking to recoup payments made to ex-CEO


<p>Billionaire Christo Wiese says he was on the verge of losing everything in the <a href="https://www.cnbcafrica.com/steinhoff/">Steinhoff scandal</a>.</p>



<p><a href="https://www.cnbcafrica.com/news/2017/12/22/steinhoff-scandal-knocks-12bn-off-value-blow-tycoon-wiese/">Wiese’s net worth plummeted</a>, at the beginning of 2018, as the Steinhoff share price went into free fall. In March 2017, his net worth, according to Forbes magazine, was at $5.6 billion. Less than a year later it fallen to a mere $300 million. It had dropped so far that when CNBC Africa contacted the Forbes Wealth Unit in the United States to verify the net worth they thought it could be a computer glitch and asked for time for the technicians to check. When they came back the head of the wealth unit Kerry Dolan was astounded.</p>



<p>“This is the biggest and fastest drop we have ever seen in
the real time net worth of any individual on the Forbes rich list,” Dolan said.</p>



<p>It could have been a lot worse Wiese told CNBC Africa in an
exclusive interview at his Pepkor headquarters in Paarl, near Cape Town.</p>



<p>“I count my blessings because if this fraud had been allowed
to go on for another year or two, I would have lost everything, including Shoprite.
I decided not to become a bitter person because that destroys my life,” says
Wiese.</p>



<p>The retail billionaire, who has recovered his net worth by extricating himself from Steinhoff to around $1.1 billion, according to Forbes, believes that culpable Steinhoff decision makers should feel the full might of the law.</p>





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<p>“Everyone who has participated, and remember they have not
been found guilty yet, in fact they have not even been arrested yet, which is
also something that puzzles me. But everyone who has perpetrated this fraud
should be made to pay,” he says.</p>



<p>Wiese also defended his decision to get involved with Steinhoff in the first place.</p>





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<p>“I had businesses in more than 30 countries before I did the
Steinhoff deal, let’s put that in perspective. I looked at Steinhoff and its
widespread of interests, its apparent very strong balance sheet and a number of
other factors. I thought that by putting these businesses together we could
create what we called a prospective African champion. In other words a retail
business that had become global, that was the vision for the business as a
whole.”</p>



<p>Yet it all turned sour and Wiese says he faces a long legal
battle for the chance of seeing a penny back from Steinhoff and admits it is
going to be tough. </p>



<p>“I shouldn’t be paid first, I should be dealt with on the
same basis. Today what is in Steinhoff 60 or 70% came from my companies of what
is left in Steinhoff belongs not to shareholders but to Steinhoff creditors.
That is how the legal system works and it is those creditors who will have to
sit around the table and decide how the assets that are still in Steinhoff have
to&nbsp; be divided there is no way in the
world any one of these creditors can be paid in cash, only paid in kind,” he
said.</p>



<p>“I am putting in my claim with all the other claims, there
are 182 banks, there are at least&nbsp; I
think, there are at least 16 other claimants that are in a similar situation to
my company and we need to sit down and decide all these people need to sit down
and decide how they will take the company forward or if they so decide to
liquidate the company which will be bad because I think at the last count there
are 100,000 people working in Steinhoff there are very valuable businesses in
Steinhoff primarily my businesses that I sold to Steinhoff so it would be&nbsp; a shame if that was the outcome but at the
end of the day creditors have to make that call.</p>



<p>A legal battle that is likely to make even more headlines in
the Steinhoff saga. </p>



<p>Watch the full interview with Christo Wiese at 7.30pm CAT on
June 25 CNBC Africa channel 410. </p>


How Christo Wiese the rich dad of South Africa nearly became poor dad

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<p>Billionaire Christo Wiese claims he almost lost everything in the Steinhoff scandal. He was speaking in an exclusive interview with CNBC Africa at his company&#8217;s headquarters in Paarl near Cape Town.</p>


Billionaire Christo Wiese on Steinhoff scandal, why infidelity could get you fired

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<p>The judicial authorities of South Africa are actively looking into crimes committed against the state by private and state owned entities. Exposed claims of corruption and fraud have become regular features on front pages and screens daily. And yet, those exposed have not been successfully prosecuted. Joining CNBC Africa for more is Bernard Hotz, Head of Business Crimes and Investigations at Werksmans Attorneys.</p>


Understanding the legal process behind prosecuting corporate scandal

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<p>The Frankfurt listed retailer which has lost 97 per cent of its value since the 2017 accounting fraud scandal- blamed one-off expenses including professional fees of 117 million euro and impairments for the loss. Steinhoff shares are more than 5 per cent down in intra-day trading.</p>


Steinhoff’s delayed FY earnings reveal €1.3bn loss

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<p>South Africa&#8217;s Directorate for Priority Crime Investigation- also known as the Hawks is under pressure to make high profile arrests from the litany of corruption cases that are alleged across the country. The Unit will also have to work with the new Investigative Directorate Unit which was recently established by President Ramaphosa. Hawks Head, Lieutenant-General Godfrey Lebeya joins CNBC Africa for more.</p>


Hawks Head Godfrey Lebeya gives update on Steinhoff & VBS

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<p>South Africa’s auditing profession has been thrown into disarray following a plethora of scandals involving Tongaat Hulett, VBS, Steinhoff and KPMG to find out what is being done to clean up the profession CNBC Africa’s Fifi Peters speaks to SAICA CEO Freeman Nomvalo.</p>


Steinhoff

Steinhoff: Is bankruptcy off the table?

Steinhoff has been fined R53 million for misleading markets

Why Steinhoff is barred from selling its shares in Tekkie Town

This fund manager never invested in Steinhoff, here’s why they won’t touch it

Louis du Preez on why he believes Steinhoff has a future

Steinhoff says it will struggle to turn a profit in coming years

Steinhoff unveils restructuring plan

Omnia’s CEO: Why we are not comparable to Steinhoff or Tongaat

Steinhoff: Investable or a dead horse?

Scandal-hit Steinhoff reports $400 million loss in half-year earnings

What you need to know about Steinhoff seeking to recoup payments made to ex-CEO

How Christo Wiese the rich dad of South Africa nearly became poor dad

Billionaire Christo Wiese on Steinhoff scandal, why infidelity could get you fired

Understanding the legal process behind prosecuting corporate scandal

Steinhoff’s delayed FY earnings reveal €1.3bn loss

Hawks Head Godfrey Lebeya gives update on Steinhoff & VBS

SAICA CEO Freeman Nomvalo on cleaning up SA’s audit profession

News Tips

Advertise With Us

Steinhoff

Steinhoff: Is bankruptcy off the table?

Steinhoff has been fined R53 million for misleading markets

Why Steinhoff is barred from selling its shares in Tekkie Town

This fund manager never invested in Steinhoff, here’s why they won’t touch it

Louis du Preez on why he believes Steinhoff has a future

Steinhoff says it will struggle to turn a profit in coming years

Steinhoff unveils restructuring plan

Omnia’s CEO: Why we are not comparable to Steinhoff or Tongaat

Steinhoff: Investable or a dead horse?

Scandal-hit Steinhoff reports $400 million loss in half-year earnings

What you need to know about Steinhoff seeking to recoup payments made to ex-CEO

How Christo Wiese the rich dad of South Africa nearly became poor dad

Billionaire Christo Wiese on Steinhoff scandal, why infidelity could get you fired

Understanding the legal process behind prosecuting corporate scandal

Steinhoff’s delayed FY earnings reveal €1.3bn loss

Hawks Head Godfrey Lebeya gives update on Steinhoff & VBS

SAICA CEO Freeman Nomvalo on cleaning up SA’s audit profession

News Tips

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