A Steinhoff International Holdings logo on display outside the company's offices in Stellenbosch. (File picture: Business Report)

Business In The News South Africa

Steinhoff says will need to restate 2016 financial statements

JOHANNESBURG, December 14 – Global retail company Steinhoff said on Thursday its 2016 consolidated financial statements would need to be restated and could no longer be relied upon.
Steinhoff’s CEO Markus Jooste resigned last week after the company said it had uncovered accounting irregularities, setting off a run from investors which have slashed billions of rand off its value.
On Thursday Steinhoff said issues concerning the validity and recoverability of certain Steinhoff Europe balance sheet assets under scrutiny in the 2017 audit work were also relevant to the 2016 consolidated financial statements.
“Therefore, the Company announces that, based on section 2:362 (6) of the Dutch Civil Code, the 2016 consolidated financial statements will need to be restated and can no longer be relied upon,” it said.
On Tuesday South Africa’s trade and industry department said it would launch an investigation into the alleged governance failures and financial irregularities at retailer Steinhoff, to determine any non-compliance with the Companies Act and Regulations.
South Africa’s main opposition Democratic Alliance (DA) said last week it had requested a probe into Steinhoff auditor Deloittes over its role in what it said “may be one of the biggest corporate scandals ever in South Africa”.
African News Agency (ANA),

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