Disgraced former CEO of Steinhoff Markus Jooste will face his first criminal case in Germany on Tuesday over accounting irregularities of various subsidiaries of the company.
The move comes five years after the South African retail giant was rocked by an accounting scandal that resulted in Steinhoff’s share price plunging by 90 percent with shareholders losing up to R200-billion in share value.
A German investigation dating back to 2015 has now led to criminal charges against Jooste and two other former directors of Steinhoff’s subsidiary company. Jooste could face jail time if found guilty.
Makwe Masilela of Makwe Fund Managers says, “I think markets will be excited that it’s long overdue as we’ve been saying there has been some settlements that have been reached but we still need the guys who are the ones who’ve done this whole thing to face the might of the law. So, as it is now, we’re still waiting to see when he will face South African courts. So, markets will just see that there is some just being done, but is there going to be any share reaction to the whole thing? When it comes to the company and the share price it’s a different story, and I don’t think it will be moved by what is happening in German courts.”
