Home Economy Steinhof fined R53 million for misleading markets

Steinhof fined R53 million for misleading markets

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Steinhoff is facing a R53 million ($3.6 million) fine from South Africa’s market regulator, the Financial Sector Conduct Authority (FSCA).

The regulator announced on Thursday that the retailers is being fined for making “false, misleading and deceptive statements” to the market.

In December 2017, Steinhoff revealed an accounting fraud that shocked investors and wiped more than R200 billion off its stock market value.

The regulator said the retailer would have been fined R1.5 billion but the penalty was reduced based on recognition that the fraud was perpetrated by former employees and the company’s cooperation with regulators worked in their favour.

FSCA ruled that multiple, significant restatements of the company’s accounts after December 2017 supported the conclusion that Steinhoff failed to meet its obligations under the Financial Markets Act.

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