DA targets Deloitte over Steinhoff

JOHANNESBURG – The DA has requested an investigation into Deloitte, the auditors of Steinhoff, after accounting irregularities were uncovered at the embattled retail group.

Investors have already lost more than R100-billion in value following the resignation of the CEO earlier in the week. 

“The resignation of Markus Jooste, Chief Executive Officer of Steinhoff International Holdings NV, and the announcement that &39;accounting irregularities&39; would require investigation, may be one of the biggest corporate scandals ever in South Africa,”  DA shadow minister of finance David Maynier said in a statement on Friday.

“We are concerned that the auditing firm responsible for signing off the financial statements, which in this case is Deloitte DV in Germany, may have turned a blind eye to accounting irregularities at Steinhoff.”

READ: Government pensions to be hit hard by Steinhoff scandal

He said he had asked for investigations by the Dutch Authority for the Financial Markets, Germany’s Auditor Oversight Body and the Independent Regulatory Board of Auditors in South Africa into whether Deloitte in Germany or South Africa had complied with international audit standards.

 

“We need to be tough on crime in the public sector, and tough on crime in the private sector, and that is why we will ensure that the scandal surrounding accounting irregularities at Steinhoff International Holdings NV, which have wiped out the savings of thousands of pensioners who invested in the company via the Government Employees Pension Fund, are fully investigated,” Maynier added.

The Minister of Finance, Malusi Gigaba, has requested reports from the Financial Services Board (FSB) and state pension funds on "the extent of exposure for retirement funds" as result of the Steinhoff scandal.

- Additional reporting by eNCA

Paid Content