Steinhoff International Holdings NV on Sept. 12 disclosed that South Africa's Financial Sector Conduct Authority, or FSCA, has concluded its investigation of the company over its accounting irregularities and has decided to impose a fine of 53 million rand on the home furnishing retailer.
The FSCA said it initially ordered a penalty of 1.5 billion rand against Steinhoff but lowered the amount to 53 million rand given the embattled company's improved financial position and to avoid penalizing innocent shareholders. It also noted the cooperation of Steinhoff's management in resolving the issue and the company's commitment to continue cooperating fully with the FSCA in all future actions taken against any persons allegedly responsible for the wrongdoing.
Even with the reduction, the FSCA noted that this is the largest single fine it has ever imposed on a company.
The home furnishing retailer was found to have overstated its accounts from fiscal 2009 until 2017 when a group of former executives implemented fake or irregular transactions that inflated the company's profit and value. Steinhoff had to restate its financial reports for 2015 and 2016, and had to delay its results for 2017 and 2018.
Steinhoff Group CEO Louis du Preez said in a statement: "We are pleased that the matter has now been brought to a conclusion and that the FSCA has recognized our full cooperation with the investigation. There are no further enforcement FSCA actions outstanding against the Steinhoff Group."
As of Sept. 11, US$1 was equivalent to 14.75 South African rand.
