Eleven months later, SAPS silent on Markus Jooste investigation

The South African Police Services (Saps) has remained silent on the investigation into the death of former Steinhoff chief executive Markus Jooste, who died by suicide last year.

A day before his alleged death, the troubled businessman was being pursued by the Financial Sector Conduct Authority (FSCA) after imposing a R475 million administrative fine on him for accounting irregularities at his former company.

Eleven months later, the police in the Western Cape did not respond when asked whether the investigation was ongoing.

The silence of the police regarding the sketchy details around his death and whether there were witnesses when his body was recovered at the scene.

Last year, Western Cape police spokesperson Colonel Andre Traut said the death inquest case docket with regards to the death of Jooste is still under investigation, and there are no new developments to report at this stage at the time.

This raised questions about how, in a high-profile case with so much media attention, the police have struggled to reinforce people’s understanding of the importance of confidentiality. There were no updates on the most minor details, such as the funeral arrangements.

The once-respected powerhouse business mogul, Jooste had his fair share of both success and failure, but now what’s left is to recall how his actions negatively impacted the country when his fraudulent activities were unearthed, costing South Africa’s Public Investment Corporation close to R200 billion of investments.

In 2014, the conglomerate teamed up with serial investor Christo Wiese for an aggressive international expansion program.

The conglomerate's stock reached its highest point in March 2016, bolstering its approach of funding dividends and acquisitions through stock sales. However, this was short-lived before everything went south.

It took a disagreement with their business partner Andreas Seifert before European regulators, journalists, and law enforcement became aware of the conglomerate's exaggerated profit and asset values and undisclosed deals with third parties outside the balance sheet. 

This prompted Deloitte LLP to request an internal investigation before approving the 2017 financial statements.

But Jooste resisted this demand and needed help convincing the Steinhoff board to appoint new auditors. Jooste submitted his resignation on December 5, 2017, followed by Wiese nine days later when a large investor, PIC, called for independent oversight.

Jooste's resignation was followed by an involved and protracted controversy concerning Steinhoff's accounting practices in its Central European business dating back to 2014.

The uncertainty saw some R160 billion of Steinhoff's value wiped off the markets in a matter of days, with continuing losses as the situation unfolded – leading to Steinhoff's demise in 2023.

thabo.makwakwa@inl.co.za

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