Ex-Steinhoff bigwigs structured deals that 'substantially' inflated profits, asset values
CAPE TOWN – The long-awaited probe into the Steinhoff accounting scandal found that former executives structured deals that “substantially” inflated profits and asset values.
In a statement released on the Stock Exchange News Service on Friday the embattled listed company stated: “The Supervisory Board and the Management Board of the Company have now received a report from PricewaterhouseCoopers setting out their findings following the investigation initiated at the request of the Supervisory Board in December 2017.
“The company has today released an overview of the forensic investigation, available on the company’s website via the following link. Shareholders and other investors in the company are advised to exercise caution when dealing in the securities of the Group.”
The report by PwC auditors made note of a number of deals that were implemented over several years that enabled Steinhoff to artificially boost earnings.
According to the report, Jooste didn’t do it alone. A myriad of third-party deals allowed the retailer’s accounts to be manipulated.
About 100 auditors at PwC laboured on the report for well over a year, and pushed back an original deadline of end 2018 due to the complexity of the work.
READ THE FULL REPORT:
BUSINESS REPORT ONLINE