Steinhoff winds back the clock in its accounting scandal

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Steinhoff winds back the clock in its accounting scandal

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Published Date: 2018-01-03 | Source: Stephen Gunnion | Author: Stephen Gunnion

Steinhoff winds back the clock in its accounting scandal

The furniture group says its 2015 account can now no longer be relied upon and will have to be restated

Steinhoff International says its financial statements for 2015 will now have to be restated as an investigation into accounting irregularities at the group continues. The furniture group, which is registered in Amsterdam, said last month that in terms of the Dutch Civil Code, its 2016 statements couldn't be relied upon and needed to be restated. Now it says a restatement of its 2015 accounts is also likely to be required. It still can't provide a timetable for when an internal review of the irregularities by its management team and auditing firm PwC is likely to be completed.

The company said the investigation also affects the statements of Steinhoff Investment Holdings, a former holding company of some of its European subsidiaries until April 2016. However, it said the restatements were unlikely to apply to Steinhoff Services Limited, which has bonds listed on the JSE.

An independent committee of its Supervisory Board is busy scrutinising the company's European balance sheet assets to ascertain their validity. The committee is headed by African Rainbow Capital co-CEO Johan van Zyl. PwC was appointed as forensic investigators and it hired US investment bank Moellis & Company and management consultancy AlixPartners to advise it.

Its shares plunged 93% last year after CEO Markus Jooste quit after the company halted the release of its results after uncovering accounting irregularities. They gained 7.5% to R5 yesterday.



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