The Financial Sector Conduct Authority (FSCA) is demanding more than R350m from former Steinhoff executive Stephanus “Stehan” Grobler for breaching the Financial Markets Act in producing misleading financial statements for investors.
Globler is also facing criminal charges over his role in the collapse of Steinhoff — a result of South Africa’s biggest corporate fraud to date.
The financial statements in question relate to the 2014, 2015, and 2016 financial statements.
“The financial statements issued by Steinhoff during the relevant period were found to be false, misleading, or deceptive in respect of material facts that were either misstated or omitted. This assessment was made with reference to the information available at the time and the circumstances under which the statements were presented to the market,” the FSCA said on Monday in a statement.
“During the period under investigation, Mr Grobler served as company secretary, head of treasury, and in-house legal counsel of the Steinhoff group. He was also a director of several Steinhoff subsidiary companies.”
The SA Reserve Bank in 2024 seized millions of rand belonging to Grobler.
The Bank seized R871,000 held in Momentum Wealth and R66m loan accounts declared by Grobler in an outfit called Suez Beleggings, as well as several small amounts held with different entities. The money was frozen due to contraventions of SA’s exchange control regulations.
Steinhoff is demanding Grobler pay back nearly R300m he was paid in salaries, bonuses and other incentives.
Grobler, who worked for the group in various capacities over a period spanning 19 years, is facing a demand of R238m from Steinhoff Africa Holdings, €1.3m from Steinhoff Europe Group Services, and €315,000 from Steinhoff Europe.
In their particulars of claim, the entities say the money paid to Grobler during his stay with the group, in particular bonuses and share incentives, was paid out under the false belief that the financial statements of the group accurately reflected its true financial position, as well as its profitability and performance.
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