Steinhoff-linked firm accused of inflating price


The Steinhoff logo. Steinhoff's share price has gone into precipitous decline following the disclosure of financial irregularities.

JOHANNESBURG - A firm linked to Steinhoff executives is being accused of selling forestry plantations to the embattled retailer at an inflated price.

According to a Bloomberg report, documents reveal South African forestry plantations purchased in 2001 were sold to Steinhoff 3 years later at more than 5 times their original value.

The deal occurred after the now troubled retailer started buying assets to produce timber needed for furniture.

Over 96 percent of the firm’s value has been wiped since accounting irregularities emerged late last year.

It appointed Price Water House Coopers to probe its books.

The firm declined to comment saying it&39;s waiting for the outcomes of the investigations.