What Did Markus Jooste Actually Do? A Summary of Steinhoff

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What Did Markus Jooste Actually Do? A Summary of Steinhoff


The world was rocked by Markus Jooste’s passing last week, as he was about to be arrested for a massive case of fraud with international consequences. Here’s what he was alleged to have done wrong.

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35 Comments

  1. It's worrying that many people here understood nothing about this fraud, including how shares work, until you explained it in simple terms. Speaks to the poor education most kids get these days.

  2. In simple terms, a retailer can be very cyclical, especially when the economy goes through a big downturn. Him and his mates used accounting laws to accrue profits that did not exist on a cash basis in the hope that the economy and the company’s real growth would recover, which it did not and in turn led to losses in creditor and shareholder money.

    Fraud tends ti reveal itself when people stop getting paid the money they’re promised.

  3. …so in short, Jooste pulled a classic Enron scam. Overinflate the stock price, use the overinflated stock price to borrow real money (City Bank in the US wrote off $150 million as a result of him) and swap the BS shares for real shares like Pep, Tekkie Town and Shoprite….I hope he rots in hell

  4. Nice broad summary – but no actual explanation? We all knew he cooked the books. Why not tell you subscribers how? One of the ways was Jooste and collaborators would set up a private company to buy a property worth R10. They would then sell it at an inflated price of R100 to Steinhoff and pocket R90. Exactly the same as so many others have done with the help of their politically connected cadres in the right government departments.

  5. What about due diligence by investing interests..should they not also responsible to their stake holders.
    It seems their indepth research was lacking, that allowed them to waste skateholder funds.
    Surely the blade is double edged, or are investment funds immune to their incompetence??