It’s obvious, by now, that the Steinhoff rot ran deep.
We’ve already seen how Markus Jooste and his buddies were cooking the books as far back as 2014, but it’s the company’s antics during October and November of last year that have left analysts shook.
Looks like the company were pretty crafty when they registered Steinhoff in Holland, as Business Live reports:
On Tuesday, Steinhoff stunned investors and corporate governance analysts when it confirmed media reports that the company had prepaid Wiese €325m during October and November 2017 for Shoprite shares, just weeks before Steinhoff collapsed.
Unlike South African company law, there is no provision in the Dutch law requiring oversight of the provision of loans or financial assistance to directors. Section 45 of the South African Companies Act requires a board resolution and also requires that shareholders agree to any payments made to directors.
Dutch law allows companies to make loans to their directors and merely requires that the management board approves the loan.
In addition, the Steinhoff articles of association do not deem a loan to a director to represent a conflict of interest.
A Dutch legal expert said it was staggering that someone in Wiese’s position was able to conduct these sorts of transactions with the company.
When you consider how many people have lost a small fortune on Steinhoff’s shares collapsing, that final money grab really stinks.
Look at that drop – rivals Nenegate:
To quote Michael Caine in a much-loved spy spoof, “there’s only two things I hate in this world – people who are intolerant of other people’s culture, and the Dutch”.
Of course we joke, because who doesn’t dig the Dutch?
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