File: The consortium of law firms has applied to the South Gauteng high court, for a class action suit for Steinhoff investors who are seeking damages
JOHANNESBURG – The Johannesburg Stock Exchange (JSE) on Monday decided not to suspend trade of scandal-hit retail giant Steinhoff&39;s shares.
The bourse said the company disclosed as much price sensitive information as it was able to share.
The stock exchange said it would be detrimental to investors to prevent the company from trading.
Shares at the company recovered somewhat on Monday, jumping as much as 40 percent from Friday&39;s close, but well below the R10-mark.
When accounting irregularities were first announced, Steinhoff&39;s share price plummeted by almost 90 percent after being an investor favourite for many years.
Steinhoff revealed it hired US investment bank Moelis & Company and management consultancy AlixPartners to assist it with liquidity and operational management.
One analyst says while broad investigations into the debacle are welcome, the exact nature of the irregularities must be revealed.
The SA Institute of Race Relations’ Ian Cruickshanks said global investigative units were involved in the matter, showing the extent of the investigation.
Meanwhile, Parliament&39;s Portfolio Committee on Public Service and Administration called upon authorities and the justice system to thoroughly investigate the involvement of the public servants&39; pension fund in the matter.
The Government Employees Pension Fund (GEPF) has reportedly lost about R12,5-billion in investments, though these funds are backed by National Treasury.
The committee raised concerns that this could lead to instability within the public service and would have a negative impact on service delivery on important government programmes and projects.
“This [a probe] would allay fears among public servants and all concerned, as well as prove that the public service is an entity of integrity,” parliamentary committee chairperson Cassel Mathale said.