Pretoria – The Specialised Commercial Crimes Court, Pretoria has sentenced insider trader and former Steinhoff physician 79-year-old Dr. Gerhardus Diedricks Burger to five years in prison, wholly suspended.
Dr. Burger, whose sentence was suspended for five years, had earlier pleaded guilty to three counts of insider trading and was convicted as such when he appeared in court on Thursday, (26 September 2024).
Dr. Burger also has to testify in the criminal proceedings against his accomplices.
The court also issued a confiscation order for €90 000 which is about R1.8million seized by Swiss authorities after the collapse of Steinhoff.
Shortly before the collapse of Steinhoff the CEO, the late Markus Jooste sent Dr. Burger who accompanied Steinhoff directors on overseas trips to look after their health a text advising him to sell his Steinhoff shares.
Dr. Burger, thereafter, sold all the Steinhoff shares held under the Dieter Burger and Lane Burger Trusts where his children are beneficiaries.
Dr. Burger also sold 39 722 Steinhoff shares held at Stefana Overseas Ltd, where he was also the beneficiary, on the Swiss stock exchange.
Shortly after the sale of the shares, Steinhoff shares plummeted and became almost worthless.
Gauteng National Prosecuting Authority (NPA) Spokesperson Lumka Mahanjana said it was at that point that the Financial Sector Conduct Authority (FSCA) instituted investigations.
The FSCA found Dr. Burger guilty of insider trading for the same transactions and he paid a penalty of R3 million.
“The FSCA then referred the matter to the NPA for criminal prosecution,” explained Mahanjana.
“The Steinhoff case, one of the biggest cases of corporate fraud in the history of South Africa, has been one of the most complex commercial crime cases that the DPCI and the NPA have had to deal with.
“At a point when a significant breakthrough was made to enrol the case earlier this year, the main accused, ex-CEO of Steinhoff Markus Jooste took his life on the eve of his arrest, thus escaping the hands of justice when it mattered the most.”
Mahanjana said the NPA “welcomes” the conviction and sentence of Dr. Burger.
“It is important for the public to understand that criminal prosecutions require patience, preparation, and a certain measure of certainty,” said Mahanjana.
