In the wake of the accounting fraud investigations at Steinhoff Africa, Christo Wiese, the chairman of the company has resigned his position.
Christo Wiese is who is also the founder and majority owner Shoprite Holdings. The accounting scandal was seen as a stain for 76-year-old Wiese who tried last year to merge Shoprite and Steinhoff but failed after shareholders could not agree.
It would be recalled that Steinhoff’s chief executive, Markus Jooste resigned after the company announced it was investigating financial irregularities in its books.
Steinhoff said in a statement that “Markus Jooste, CEO of Steinhoff has tendered his resignation with immediate effect and the Board has accepted the resignation”.
Steinhoff promised it will update the market as the aforesaid investigation proceeds. The Company will publish the audited 2017 consolidated financial statements when it is in a position to do so. In addition, the Company will determine whether any prior years’ financial statements will need to be restated.
“The Supervisory Board has appointed its Chairman, Dr Christo Wiese, as Executive Chairman (Delegated Supervisory Chairman) on an interim basis. In addition, Pieter Erasmus, the previous CEO of Pepkor Group, has agreed to join Dr Wiese in an executive advisory capacity to assist with managing the group’s various retail interests around the world. Dr Wiese and the Board will supplement the management team and will embark on a detailed review of all aspects of the Company’s business with a view to maximising shareholder value”.
“Shareholders and other investors in Steinhoff are advised to exercise caution when dealing in (sic) the securities of the Group,” the company said.