Dti, CIPC to investigate Steinhoff

Tuesday, December 12, 2017

The Department of Trade and Industry and the Companies and Intellectual Property Commission (CIPC) are to launch an investigation into allegations against retail holding company, Steinhoff International.

In a statement on Tuesday, the department and the CIPC (which is an agency of the department) expressed concern at allegations of governance failures and financial irregularities at the South African retailer that led to the resignation of its Chief Executive Officer, Markus Jooste.

“The dti and CIPC will be launching an investigation into the allegations in so far as they relate to non-compliance with the Companies Act and Regulations.  The dti will further suggest that the Independent Regulatory Board for Auditors (IRBA) also consider the circumstance with regard to the role of auditors in this instance,” it said.

In August, the department announced that it has commenced with the process of amending the Companies Act 2008.The Act was signed by President Jacob Zuma on 8 April 2009.

The act encourages economic stability through good governance that will enhance investor confidence and international and domestic competitiveness in the South African economy.

Last week, Finance Minister Malusi Gigaba called on corporates to maintain a high standard of good corporate governance.

“The Minister wishes to reiterate his call on all South African corporations to maintain the highest practices of corporate good governance, reflecting that South Africans have entrusted them with their pension savings,” said the Ministry of Finance.

Minister Gigaba further announced that he supports the decision by the Financial Services Board (FSB) to institute an independent investigation into Steinhoff.

Meanwhile, the Government Employees Pension Fund (GEPF) has moved to assure its members that their pensions are safe following revelations of accounting irregularities at Steinhoff. - SAnews.gov.za

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