The DA is not going to agree to “pussy foot” around Steinhoff International Holdings N.V.

We are concerned to hear [see press statement] out of the blue that lawyers, acting on behalf of Parliament, are in behind-the-scenes negotiations on the “legal parameters” for the hearings on the scandal surrounding “accounting irregularities” at Steinhoff International Holdings N.V.

We are not going to agree to “pussy foot” around the scandal surrounding “accounting irregularities” at Steinhoff International Holdings N.V.

That is why we have proposed that:

• former, and serving directors, of the Supervisory Board, and Management Board, of Steinhoff International Holdings N.V. appear, or be summonsed to appear, at the hearings;
• that considerably more time be allocated for to the presentation and the cross examination of witnesses from Steinhoff International Holdings N.V.;
• that Deloitte B.V., Deloitte South Africa, the Companies and Intellectual Properties Commission and the South African Revenue Service appear at the hearings; and
• that committee members be allocated time to cross examine witnesses in line with the practice adopted by the Standing Committee on Public Accounts.

We have not been consulted on any “legal parameters”, and we have not agreed to any “legal parameters”, and insist that for any “legal parameters” to be credible, they must be agreed to by the committee’s participating in the hearings, rather than lawyers acting on behalf of Parliament.

We need to be tough on crime in the public sector, and tough on crime in the private sector, and we need to do everything to ensure that the public hearings into the scandal surrounding “accounting irregularities” at Steinhoff International Holdings N.V. does not turn out to be a shambles in Parliament.

Standing Committee on Finance must get stuck into Steinhoff International Holdings N.V.

David Maynier MP, DA Shadow Minister of Finance, correspondence with Yunus Carrim, Chairperson of the Standing Committee on Finance, is enclosed [here]
The scandal surrounding “accounting irregularities” at Steinhoff International Holdings N.V. may be one of the biggest corporate scandals in the history of South Africa.
That is why I have written to the Chairperson of the Standing Committee on Finance, Yunus Carrim, requesting him to consider scheduling public hearings on the scandal surrounding Steinhoff International Holdings N.V.
The public hearings should in my view be scheduled on or about 30/31 January 2018 and the following witnesses and/or institutions should be invited to appear:
Overview & Impact: Mr Dondo Mogajane (National Treasury);
Steinhoff International Holdings N.V. (Supervisory Board):
o Dr Christo Wiese (Steinhoff International Holdings N.V.), Mr Johan van Zyl (Steinhoff International Holdings N.V.) and Dr Steve Booysen (Steinhoff International Holdings N.V.);
Steinhoff International Holdings N.V. (Management Board):
o Mr Markus Jooste (Steinhoff International Holdings N.V.) and Mr Ben Le Grange (Steinhoff International Holdings N.V.);
Auditors: Mr Patrick Seinstra (Deloitte B.V.);
Regulators: Advocate Dube Tshidi (Financial Services Board), Ms Nicky Newton-King (Johannesburg Stock Exchange), Mr Tom Moyane (South African Revenue Service), Mr Lesetja Kganyago (South African Reserve Bank) and Mr Bernard Agulhas (Independent Regulatory Board for Auditors);
Pension Funds: Mr Abel Sithole (Government Employees Pension Fund); and
Asset Managers: Dr Dan Matjila (Public Investment Corporation).
We need to be tough on crime in the public sector, and tough on crime in the private sector, and that is why we need to get stuck into what may be one of the biggest corporate scandals in the history of South Africa

DA requests an investigation into the auditors of Steinhoff International Holdings NV

The resignation of Markus Jooste, Chief Executive Officer of Steinhoff International Holdings NV, and the announcement that “accounting irregularities” would require investigation, may be one of the biggest corporate scandals ever in South Africa.
We therefore welcome the fact that the accounting irregularities at Steinhoff International Holdings NV will now be investigated by external and independent institutions, including the Financial Services Board and the Johannesburg Stock Exchange in South Africa.
However, we are concerned that the auditing firm responsible for signing off the financial statements, which in this case is Deloitte DV in Germany, may have turned a blind eye to accounting irregularities at Steinhoff International Holdings NV.
I have, therefore, formally requested an investigation into whether Deloitte DV in Germany and/or Deloitte South Africa complied with international audit standards in its audits of Steinhoff International Holdings NV.
Because this matter traverses a number of jurisdictions, I have requested investigations by the following regulators:

  • the Dutch Authority for the Financial Markets (Netherlands);
  • the Auditor Oversight Body (Germany); and
  • the Independent Regulatory Board of Auditors (South Africa).

We need to be tough on crime in the public sector, and tough on crime in the private sector, and that is why we will ensure that the scandal surrounding accounting irregularities at Steinhoff International Holdings NV, which have wiped out the savings of thousands of pensioners who invested in the company via the Government Employees Pension Fund, are fully investigated in South Africa.