JSE fines Steinhoff International R13.5 million for breaching regulations
DURBAN - The JSE has slapped Steinhoff International with a combined penalty of R13.5 million for breaching various regulations of its listing requirements pertaining to the release of its past results.
This comes after the troubled retailer admitted to accounting irregularities in December 2017 which led to a more than 95 percent decline in its share price.
As a result the group was forced to restate its prior results.
The JSE said today that the Steinhoff’s previously published financial information for the 2016, 2015 and prior financial periods did not comply with international financial reporting standards (IFRS) and was incorrect, false and misleading in material aspects and this incorrect information was disseminated to shareholders, the JSE and the investing public.
“In these circumstances the JSE found that Steinhoff’s financial statements failed to comply with section 8.62(b) of the JSE Listings Requirements for the period ended June 2015 and prior financial periods; and general principle (v) for the fifteen months to end September 2016,” the JSE said.
The JSE said it deems the accuracy and reliability of financial information published by companies are of critical importance in ensuring a fair, efficient and transparent market.
The JSE has imposed a maximum permissible penalty of R7.5m for for the breach of section 8.62(b) in respect of the company’s financial statements for June 2015 and prior financial periods and general principle (v) for the fifteen months to end September 2016 for not complying with IFRS and the JSE viewed the financial statements as incorrect, false and misleading in material aspects.
Steinhoff was also fined R5m for for failure to disclose the Steinhoff Global Investments GmbH (SGI) transaction on SENS at the time and in the financial results for the fifteen months to end September 2016 when published and a public censure and a fine of R1m for failure to disclose at the time the operational rights transaction on SENS and in the financial results for the fifteen months to end September 2016 when published.
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