All Article Properties:
{
"objectType": "Article",
"id": "2283567",
"signature": "Article:2283567",
"url": "https://prod.dailymaverick.co.za/article/2024-07-19-reserve-bank-orders-steinhoff-to-forfeit-more-than-r6-billion-to-the-state/",
"shorturl": "https://www.dailymaverick.co.za/article/2283567",
"slug": "reserve-bank-orders-steinhoff-to-forfeit-more-than-r6-billion-to-the-state",
"contentType": {
"id": "1",
"name": "Article",
"slug": "article",
"editor": "default"
},
"views": 0,
"comments": 19,
"preview_limit": null,
"rating": 0,
"excludedFromGoogleSearchEngine": 0,
"status": "publish",
"title": "Reserve Bank orders Steinhoff to forfeit more than R6-billion to the State",
"firstPublished": "2024-07-19 18:35:31",
"lastUpdate": "2024-07-19 19:15:34",
"categories": [
{
"id": "27",
"name": "Scorpio",
"signature": "Category:27",
"slug": "scorpio",
"typeId": {
"typeId": "1",
"name": "Daily Maverick",
"slug": "",
"includeInIssue": "0",
"shortened_domain": "",
"stylesheetClass": "",
"domain": "prod.dailymaverick.co.za",
"articleUrlPrefix": "",
"access_groups": "[]",
"locale": "",
"preview_limit": null
},
"parentId": null,
"parent": [],
"image": "",
"cover": "",
"logo": "",
"paid": "0",
"objectType": "Category",
"url": "https://prod.dailymaverick.co.za/category/scorpio/",
"cssCode": "",
"template": "default",
"tagline": "",
"link_param": null,
"description": "Scorpio is the investigative unit of Daily Maverick. It was launched in May 2017 with the aim of carrying out in-depth investigations into corruption, malfeasance, and other wrongdoing in South Africa.\r\n\r\nScorpio will often collaborate with others in the media, including amaBhungane. In a country that desperately needs ten more amaBhunganes, we do not think of each other as competition but rather as like-minded allies with a common goal and different setup.",
"metaDescription": "",
"order": "0",
"pageId": null,
"articlesCount": null,
"allowComments": "1",
"accessType": "freecount",
"status": "1",
"children": [],
"cached": true
},
{
"id": "387188",
"name": "Maverick News",
"signature": "Category:387188",
"slug": "maverick-news",
"parentId": null,
"parent": [],
"image": "",
"cover": "",
"logo": "",
"paid": "0",
"objectType": "Category",
"url": "https://prod.dailymaverick.co.za/category/maverick-news/",
"cssCode": "",
"template": "default",
"tagline": "",
"link_param": null,
"description": "",
"metaDescription": "",
"order": "0",
"pageId": null,
"articlesCount": null,
"allowComments": "1",
"accessType": "freecount",
"status": "1",
"children": [],
"cached": true
}
],
"access_groups": [],
"access_control": false,
"counted_in_paywall": true,
"content_length": 2348,
"contents": "<p><span style=\"font-weight: 400;\">Reserve Bank deputy governor Fundi Tshazibana published <a href=\"https://www.scribd.com/document/751794383/Download-1\">three</a> <a href=\"https://www.scribd.com/document/751794720/Download\">notices</a> and <a href=\"https://www.scribd.com/document/751795348/Download-2\">orders</a> of forfeiture in the Government Gazette on Friday, 19 July, informing the Steinhoff group of companies that “I hereby declare and order forfeit to the state” about R6-billion in seven local accounts. </span></p><p><span style=\"font-weight: 400;\">The Steinhoff funds must be paid over to the National Revenue Fund (NRF). The NRF is in effect the government purse, which collects all revenue (by the tax man), fines and donations. </span></p><p><span style=\"font-weight: 400;\">The notices and orders were served against SAHPL (Pty) Limited, known as Steinhoff Africa Holdings, SIHPL (Pty) Limited, known as Steinhoff International Holdings, and Ibex Investment Holdings Limited, which previously was Steinhoff Investment Holdings. </span></p><p><span style=\"font-weight: 400;\">Ibex is now the new Steinhoff. </span></p><p><span style=\"font-weight: 400;\">This is a major win for the central bank on at least two fronts. Not only are they broad-chested about the sum forfeited, but it seems the forfeiture notices may have scuppered an existing court case against the Reserve Bank. </span></p><p><span style=\"font-weight: 400;\">Late last year, Ibex/Steinhof initiated proceedings in the high court in Pretoria contesting the reserve bank’s freezing order of May 2023 which froze R5.5-billion in five local accounts. </span></p><p><span style=\"font-weight: 400;\">Scorpio wrote about how Steinhoff questionably did not declare this action in its annual financial statements </span></p><p><b>Read more on Daily Maverick:</b> <a href=\"https://www.dailymaverick.co.za/article/2023-07-05-reserve-bank-freezes-steinhoff-accounts/\"><span style=\"font-weight: 400;\">SARB freezes billions in Steinhoff accounts — but you wouldn’t notice in company financial statements</span></a></p><p><span style=\"font-weight: 400;\">This case is now generally viewed as mostly moot. Ibex/Steinhoff is expected to put up a huge fight to set aside Tshazibana’s decision but will probably be forced to file a new application. </span></p><p><span style=\"font-weight: 400;\">The Reserve Bank’s freezing order of May 2023 and this week’s forfeiture notices and orders come after a years-long investigation, codenamed Project Castle, confirmed the central bank’s suspicion that Steinhoff and its management led by Jooste probably breached a long list of exchange control regulations. </span></p><p><span style=\"font-weight: 400;\">Scorpio understands that about R600-billion was possibly moved offshore – possibly unlawfully in many instances.</span></p><div><strong>The Ibex/Steinhoff accounts held the following funds and is now forfeited to the state:</strong></div><div></div><div><strong>* SAHPL: </strong></div><div>Euro account at Standard Bank: Euro40,34-million;</div><div>FNB account: R311,3-million</div><div>FNB account: R223,2-million</div><div></div><div><strong>* SIHPL: </strong></div><div>FNB account: R190,9-million</div><div>FNB account: R2,23-billion</div><div>FNB account: R2,25-billion</div><div></div><div><strong>* Ibex Investment:</strong></div><div>FNB account: R166,6-million</div><div></div><div><span style=\"font-weight: 400;\"><strong>DM</strong></span></div>",
"teaser": "Reserve Bank orders Steinhoff to forfeit more than R6-billion to the State",
"externalUrl": "",
"sponsor": null,
"authors": [
{
"id": "1330",
"name": "Pauli van Wyk",
"image": "https://cdn.dailymaverick.co.za/dailymaverick/wp-content/uploads/pauli-van-wyk.png",
"url": "https://www.dailymaverick.co.za/author/pauli-van-wyk/",
"editorialName": "pauli-van-wyk",
"department": "",
"name_latin": ""
}
],
"description": "",
"keywords": [
{
"type": "Keyword",
"data": {
"keywordId": "10877",
"name": "Markus Jooste",
"url": "https://www.dailymaverick.co.za/article_tag//",
"slug": "markus-jooste",
"description": " \r\n\r\nMarkus Jooste is a South African businessman who was the CEO of Steinhoff International from 2001 to 2017. He is alleged to have masterminded the company's widespread accounting fraud, which resulted in the collapse of its share price and the loss of billions of dollars in shareholder value. Jooste resigned from Steinhoff in December 2017 and when he fled South Africa.\r\n\r\nUnder Jooste's leadership, Steinhoff grew rapidly through a series of acquisitions. The company acquired a number of well-known brands, including Conforama, Poundland, and Mattress Firm. Steinhoff's share price soared and Jooste was hailed as a business genius.\r\n\r\nHowever, in 2017, it was revealed that Steinhoff had been engaged in widespread accounting fraud. The fraud involved a complex scheme of intercompany loans and asset transfers that were used to inflate the company's profits. Steinhoff also overstated its inventory levels and used aggressive accounting practices to make its financial statements look more favourable.\r\n\r\nThe fraud wiped out billions of dollars in shareholder value and left thousands of investors out of pocket. Jooste resigned from Steinhoff in December 2017 and has since fled South Africa.\r\n\r\nJooste is facing criminal charges in South Africa and Germany. He is also being investigated by the US Securities and Exchange Commission. It is unclear whether he will ever be brought to justice.",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Markus Jooste",
"translations": null,
"collection_id": null,
"image": ""
}
},
{
"type": "Keyword",
"data": {
"keywordId": "10878",
"name": "Steinhoff",
"url": "https://www.dailymaverick.co.za/article_tag//",
"slug": "steinhoff",
"description": "Steinhoff International is a South African multinational retail corporation that had operations in more than 30 countries. It was founded in 1964 by Bruno Steinhoff and grew rapidly through a series of acquisitions. In 2017, the company's share price collapsed by more than 90% after it was revealed that it had been engaged in widespread accounting fraud. The scandal, which is considered to be one of the biggest corporate frauds in history, wiped out billions of dollars in shareholder value and left thousands of investors out of pocket.\r\n\r\nThe fraud involved a complex scheme of intercompany loans and asset transfers that were used to inflate Steinhoff's profits. The company also overstated its inventory levels and used aggressive accounting practices to make its financial statements look more favourable. The fraud was allegedly masterminded by Markus Jooste, who was the company's CEO at the time. Jooste resigned from Steinhoff in December 2017. He is currently wanted in Germany for failing to appear for a court appearance in a related matter.\r\n\r\nThe Steinhoff scandal has had a significant impact on the South African economy. The company was one of the country's largest employers and its collapse has led to job losses and uncertainty in the retail sector. The scandal has also damaged investor confidence in South Africa's financial markets.\r\n\r\nIn the wake of the scandal, Steinhoff has been undergoing a restructuring process. The company has sold off assets and is trying to reduce its debt burden. It is unclear whether Steinhoff will be able to survive the scandal, but it is likely that the company will be a shadow of its former self.",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Steinhoff",
"translations": null,
"collection_id": null,
"image": ""
}
},
{
"type": "Keyword",
"data": {
"keywordId": "53683",
"name": "reserve bank",
"url": "https://www.dailymaverick.co.za/article_tag//",
"slug": "reserve-bank",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "reserve bank",
"translations": null,
"collection_id": null,
"image": ""
}
},
{
"type": "Keyword",
"data": {
"keywordId": "421391",
"name": "Ibex",
"url": "https://www.dailymaverick.co.za/article_tag//",
"slug": "ibex",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Ibex",
"translations": null,
"collection_id": null,
"image": ""
}
},
{
"type": "Keyword",
"data": {
"keywordId": "421392",
"name": "Fundi Tshazibana",
"url": "https://www.dailymaverick.co.za/article_tag//",
"slug": "fundi-tshazibana",
"description": "",
"articlesCount": 0,
"replacedWith": null,
"display_name": "Fundi Tshazibana",
"translations": null,
"collection_id": null,
"image": ""
}
}
],
"short_summary": null,
"source": null,
"related": [],
"options": [],
"attachments": [
{
"id": "3066506",
"name": "Dario-SteinhoffSecrecy",
"description": "Illustrative image: Former Steinhoff CEO Markus Jooste. (Photo: Brenton Geach / Gallo Images)",
"focal": "50% 50%",
"width": 0,
"height": 0,
"url": "https://cdn.dailymaverick.co.za/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg",
"transforms": [
{
"x": "200",
"y": "100",
"url": "https://cdn.dailymaverick.co.za/i/n8E8tmfKCbJ78NNvEMMz9GBq6F0=/200x100/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg"
},
{
"x": "450",
"y": "0",
"url": "https://cdn.dailymaverick.co.za/i/yoQy8b6FeEilXXXOCxzb__iCPoA=/450x0/smart/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg"
},
{
"x": "800",
"y": "0",
"url": "https://cdn.dailymaverick.co.za/i/RAu1K9SCnJIu78--x6j9zLfUkqM=/800x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg"
},
{
"x": "1200",
"y": "0",
"url": "https://cdn.dailymaverick.co.za/i/toASS4z-h_v_AlRgxzSJ7D1kBDI=/1200x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg"
},
{
"x": "1600",
"y": "0",
"url": "https://cdn.dailymaverick.co.za/i/jjICKKwQdu-Y1BY8_TMF29zLvww=/1600x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg"
}
],
"url_thumbnail": "https://cdn.dailymaverick.co.za/i/n8E8tmfKCbJ78NNvEMMz9GBq6F0=/200x100/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg",
"url_medium": "https://cdn.dailymaverick.co.za/i/yoQy8b6FeEilXXXOCxzb__iCPoA=/450x0/smart/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg",
"url_large": "https://cdn.dailymaverick.co.za/i/RAu1K9SCnJIu78--x6j9zLfUkqM=/800x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg",
"url_xl": "https://cdn.dailymaverick.co.za/i/toASS4z-h_v_AlRgxzSJ7D1kBDI=/1200x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg",
"url_xxl": "https://cdn.dailymaverick.co.za/i/jjICKKwQdu-Y1BY8_TMF29zLvww=/1600x0/smart/filters:strip_exif()/file/dailymaverick/wp-content/uploads/2024/03/p1-graphic.jpg",
"type": "image"
}
],
"summary": "Reserve Bank deputy governor Fundi Tshazibana flexes her financial muscles, declaring Steinhoff's R6-billion in the local accounts forfeit to the state, a move that not only leaves the company scrambling but also potentially throws a spanner in the works of their court case against the central bank.",
"introduction": "<ul><li>Reserve Bank deputy governor Fundi Tshazibana orders forfeiture of R6-billion from Steinhoff group in Government Gazette notices.</li><li>Funds to be paid to National Revenue Fund, government's financial hub for revenue collection.</li><li>Notices served against Steinhoff Africa Holdings, Steinhoff International Holdings, and new entity Ibex Investment Holdings.</li><li>Central bank's actions likely to impact court case against Reserve Bank, linked to suspected exchange control breaches by Steinhoff.</li></ul>",
"template_type": null,
"dm_custom_section_label": "Maverick News, Scorpio",
"dm-key-theme": null,
"dm-article-theme": null,
"dm-user-need": null,
"dm-disable-comments": false,
"elements": [],
"seo": {
"search_title": "Reserve Bank orders Steinhoff to forfeit more than R6-billion to the State",
"search_description": "<!-- WP --><span style=\"font-weight: 400;\">Reserve Bank deputy governor Fundi Tshazibana published <a href=\"https://www.scribd.com/document/751794383/Download-1\">three</a> <a href=\"https://www.scribd.",
"social_title": "Reserve Bank orders Steinhoff to forfeit more than R6-billion to the State",
"social_description": "<!-- WP --><span style=\"font-weight: 400;\">Reserve Bank deputy governor Fundi Tshazibana published <a href=\"https://www.scribd.com/document/751794383/Download-1\">three</a> <a href=\"https://www.scribd.",
"social_image": ""
},
"time_to_read": 92,
"cached": true
} 
Illustrative image: Former Steinhoff CEO Markus Jooste. (Photo: Brenton Geach / Gallo Images) 