Johannesburg – The Financial Sector Conduct Authority (FSCA) has imposed a hefty R475 million administrative fine on Markus Jooste, the former CEO of Steinhoff.
The FSCA imposed a fine on the sullied businessman for breaching the Financial Markets Act (FMA) in connection to his disclosure of Steinhoff International’s financial status.
Jooste has to pay the administrative penalty to the Financial Sector Conduct Authority on or before Tuesday, (19 April 2024).
Following an earlier determination by the FSCA that Markus Jooste violated the FMA and was subject to a R20 million penalty under the Financial Sector Act, the decision and penalty imposed by the FSCA were affirmed by the Financial Services Tribunal.
“The investigation found that Jooste and Dirk Schreiber made or published false, misleading, or deceptive statements about Steinhoff International Holdings Limited and Steinhoff International Holdings NV, which they knew or ought reasonably to have known were false, misleading, or deceptive,” said FSCA.
The FSCA found that Jooste and Schreiber contravened section 81(1)(a) and (b) of the Financial Markets Act, 19 of 2012 (the FMA).
The contraventions were in respect of Steinhoff International Holdings Ltd and Steinhoff International Holdings NV’s annual financial statements and annual reports for the 2014 to 2016 financial years and for the 2017 half year.
The Steinhoff International securities were listed on the Johannesburg Stock Exchange (the JSE) and the Frankfurt Stock Exchange (the FSE) during this period.
Section 81(1)(a) of the FMA prohibits a person from, directly or indirectly, making or publishing any false or misleading or deceptive statement.
The FMA also prohibits the promise or forecast in respect of any material fact regarding the past or future performance of a company, that has listed securities on a regulated market, and which the person knows, or ought reasonably to know at the time and in light of the circumstances in which it is published, is false, misleading or deceptive.
Section 81(1)(b) of the FMA similarly prohibits such a publication if, for the reason of the omission of a material fact, the statement, promise or forecast is rendered false, misleading or deceptive.
The FSCA imposed an administrative penalty of R475 million on Jooste for contravening the aforementioned sections of the FMA.
The penalty includes a contribution of R10 million to reimburse the FSCA for reasonable costs incurred in connection with the investigation of the contravention, and interest at the rate of 11.75% (as prescribed by the Minister of Finance in terms of the Prescribed Rate of Interest Act, 55 of 1975),” said the regulator.
fraudFSCAMarkus JoosteSteinhoff
*The article first appeared in our sister publication: techfinancials.co.za
