— Posted in Business
How Did Steinhoff’s Boss Manage to Cause the Company to Crash in SA?
Billionaire and ex-CEO to Steinhoff, Markus Jooste, has become the face of South Africa’s massive corporate scandal. Within 48 hours after the scandal began, the ratio between Steinhoff’s loss and profit was outrageously different as the funds that have been lost within the accounting books were far greater than what was estimated.
Magda Wierzycka, the CEO of Sygnia asset management said that the corporate structure of the Steinhoff scandal was as close to the Ponzi scheme as history could get. South African retirees who had invested their pensions through the PIC have already lost billions. However, it is not only millions of government employees who will be slightly poorer. The extent of the Steinhoff scandal has already pushed Jooste under the public spotlight facing the corporate boardrooms.
Steinhoff was also condemned by Black Business for their alleged ‘unethical, corrupt behavior’. Before Christo Wiese made an exit from the company, he replaced Jooste as the Executive Chairman and has been running the company after Jooste’s resignation. Wiese is Steinhoff’s biggest shareholder, and some of the estimated loss from Wiese’s funds totaled to as much as R37-billion down the drain.
Previously before Jooste resigned from the company, he was in charge of running the firm that held more than 130,000 employees within the span of 32 countries. He was able to hold his position as CEO for close to 30 years before getting any attention from the court, even with his wealth and success.
Steinhoff shares have already gone further spiraling down before the plans to raise funds from selling off the remaining assets came. In the end, the scandal on the Steinhoff news still boggles everyone’s mind. The main problem is that there is not much to carry on with such limited information, given that the results from the analyst are stating that the speculation is based on very limited information available.