The Steinhoff heist was one of the most notorious in South African history.
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South Africa’s financial markets regulator has imposed a R358.75 million administrative penalty on a former senior executive of Steinhoff International Holdings, more than six years after one of the country’s biggest corporate scandals rocked local markets and wiped billions off investor wealth.
The Financial Sector Conduct Authority (FSCA) said on Monday that its investigation into Stephanus Johannes “Stephan” Grobler, who served as company secretary, head of treasury and in-house legal counsel during much of the period under review, found he breached sections of the Financial Markets Act by making or publishing false, misleading or deceptive financial statements for the 2014, 2015 and 2016 financial years, as well as the 2017 half-year.
“The financial statements issued by Steinhoff during the relevant period were found to be false, misleading or deceptive in respect of material facts that were either misstated oromitted. This assessment was made with reference to the information available at the time and the circumstances under which the statements were presented to the market," the FSCA said.
Cosatu has welcomed the fine. It said in a statement, "This is a welcome and long overdue victory, albeit after so many years, for workers and pensioners who saw R24 billion in pension and other funds lost in the Steinhoff heist, one of the most notorious in South African history. Whilst appreciating this victory and earlier fines and convictions for some of the Steinhoff accused, COSATU is deeply disappointed that eight years after down the road, the National Prosecuting Authority (NPA) has yet to conclude the prosecution and conviction of all involved in the Steinhoff theft and much of the stolen funds remain unaccounted for. "
Steinhoff’s collapse began with the 2017 revelation of accounting irregularities that forced the company to restate results going back several years, triggered a catastrophic fall in its share price and ultimately led to its official liquidation in October 2023.
The scandal, which is widely regarded as South Africa’s largest corporate governance failure, erupted after auditors flagged problems in late 2017, prompting the abrupt resignation of then-CEO Markus Jooste and sending shares into a tailspin. Investors lost tens of billions of rand as Steinhoff’s market capitalisation plunged, numerous civil claims were filed and regulatory inquiries mounted in multiple jurisdictions.
Grobler’s penalty is part of a broader effort by South African regulators to hold individuals to account for their roles in the Steinhoff fraud. Earlier enforcement actions have led to other executives being charged with fraud and insider trading, and the company reached a multi-jurisdictional settlement to resolve investor claims worth billions of rands.
Steinhoff’s saga exposed deep governance and oversight weaknesses that have since prompted calls for tighter regulation of listed companies and auditing practices in South Africa. Authorities, including the FSCA and the Johannesburg Stock Exchange, have since tightened rules to boost transparency and investor protection.
Grobler has previously appeared before the Pretoria Specialised Commercial Crimes Court in connection with the retailer’s long-running accounting scandal. He faces charges that include racketeering, several counts of fraud, the manipulation of financial statements and the failure to report alleged unlawful activities tied to the company’s financial reporting between 2014 and 2016. Prosecutors allege that he worked with other senior executives, including former chief executive Markus Jooste, in preparing documentation that underpinned transactions which misstated Steinhoff’s financial position.
Grobler was released on R150,000 bail under strict conditions, including regular reporting to police, surrendering his travel documents and remaining within Gauteng unless granted permission to travel. The criminal proceedings are ongoing and have been postponed to later court dates.
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