How Steinhoff suspects triggered massive payouts

Former Steinhoff executives Ben la Grange and Stéhan Grobler have been indicted on multiple charges of fraud, racketeering, and corruption. The state has accused them of creating a ‘sophisticated washing machine’ to create money from nothing under the guidance of the late Markus Jooste. Fin24 reports that prosecutors say the duo squeezed millions of rands out of the retailer in bonuses, salaries, and lucrative stock options. This ‘systematic and organised’ fraud was allegedly cooked up to trigger tens of millions of rands in payouts via bonuses and lucrative share incentive deals. The details of the charges are set out in the NPA's first indictment in a criminal case linked to Steinhoff. The indictment was finally submitted to court six-and-a-half years after Jooste abruptly resigned from the retailer at the first signs of what would become SA's largest private sector fraud. Prosecutors argue that the three worked with ‘common purpose’ to defraud the retailer for their personal benefit. To do so, they are alleged to have falsified Steinhoff's financial records for years to make it seem far more profitable than it was.

Fin24 notes that La Grange, who served as Steinhoff's chief financial officer under Jooste between 2013 and 2017, was arrested and appeared in court on Wednesday. Grobler, who worked at Steinhoff for nearly a decade – rising to become its head of legal affairs – handed himself over to the police in March. The two are facing a raft of criminal charges, including fraud, racketeering, and corruption, which could put them behind bars for years if found guilty. They are out on bail and have had their passports confiscated. La Grange last week said he intended to plead not guilty to all the charges. Grobler in March said he was ‘confident’ he would be able to clear his name. The state's indictment shows it intends to argue that the accused cooked Steinhoff's books in a calculated and complex fraud scheme to squeeze millions out of the retailer in bonuses, salaries, and stock options.

Full Fin24 report