IN a shocking turn of events, disgraced financial executive Markus Jooste, former chief executive of Steinhoff, was found dead from an apparent suicide in Hermanus, South Africa, on Wednesday. Jooste’s death occurred just a day before he was scheduled to hand himself over to the police to face charges of fraud and corruption, among others.
The suicide follows the publication of a story revealing that Jooste had been fined 475 million rand ($25.15 million) by South Africa’s Financial Sector Conduct Authority (FSCA) for publishing false and misleading financial statements. Steinhoff, the retail group majority-owned by Jooste, has faced significant losses and numerous lawsuits since disclosing accounting irregularities in December 2017, leading to near-collapse.
The investigation by the FSCA found that Jooste and European finance boss Dirk Schreiber made or published statements about Steinhoff International Holdings that were false, misleading, or deceptive. This included misleading shareholders by the omission of material facts from the company’s financial statements and annual reports for the years 2014 to 2016 and the first half of 2017.
While both Jooste and Schreiber were found to have contravened sections of the Financial Markets Act, Jooste was ordered to pay a hefty fine to the regulator by April 19. This fine also includes reimbursing the FSCA for reasonable investigation costs, totalling 10 million rand. However, Schreiber was not imposed an administrative penalty due to his cooperation with the investigation and other factors.
Jooste’s death has sent shockwaves through South Africa’s financial sector, as many ponder the extent of the pressures he faced amidst the legal troubles and looming court appearances. The timing of his death, just before facing the consequences of his alleged misconduct, adds further intrigue to an already complex and tumultuous saga surrounding Steinhoff’s downfall.
As investigations continue into the circumstances surrounding Jooste’s death, questions remain about the broader implications for Steinhoff, its shareholders, and the ongoing legal battles stemming from the accounting scandal. The news of Jooste’s suicide serves as a stark reminder of the profound personal and professional tolls wrought by corporate malfeasance and financial misconduct.
