Jooste may benefit from absence of SA-Germany extradition treaty

Given that South Africa does not have an extradition treaty with Germany, lawyers of disgraced businessman Markus Jooste may not necessarily need to challenge the warrant for arrest that has been issued against him.

Jooste, the former chief executive officer of the embattled retail giant, Steinhoff International Holdings, failed to appear for his trial after he was charged with accounting fraud in Germany earlier this year.

As a result, the Regional Court of Oldenburg issued a warrant of arrest for Jooste within the last two weeks.

Challenges with passport

Jooste’s attorney, Bernd Gross, had informed the court that his client was subject to more substantial investigations and allegations in South Africa compared to Germany.

He also said that Jooste had also encountered several challenges related to his passport due to an agreement with South African authorities, which restricted his ability to travel.

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But Minister in the Presidency, Khumbudzo Ntshavheni, said that this was not the case.

“I would like to remind you that during the JCPS [Justice, Crime Prevention and Security Cluster] briefing, when there were allegations that Mr Jooste was claiming that he could not travel because of the restrictions on his passport in the country, the Minister of Justice at the time clarified that the arrangement with Mr Jooste does not prevent and preclude him from attending to his case in Germany,” she said.

Can Germany hold Jooste accountable?

Does Germany have any power to do anything about Jooste’s disregard for their law? That remains to be seen.

According to German legal firm, Schlun & Elseven Rechtsanwälte, extraditions between Germany and South Africa are based on the European Convention on Extradition, which South Africa agreed to in 2003 and Article 6 (1)a of this agreement states that all contracting states are entitled to refuse to extradite their citizens.

If South Africa refuses to extradite him, there is little to nothing Germany can do about it. But South Africa hasn’t stated or denied whether it would or would not agree to extradite Jooste.

Minister Ntshavheni confirmed that the South African government has not received an extradition request for Jooste.

“We cannot speculate, [but] if the extradition request arrives, we will then process it at that point,” she added.

Accounting fraud

In 2021, Jooste faced charges of accounting fraud, stemming from a series of events that unfolded several years prior. His initial motive was to attract investors by portraying the company, Steinhoff, as highly successful and financially sound.

However, since the desired results were not being achieved organically, Jooste allegedly resorted to deceptive practices to create the illusion of remarkable performance under his leadership.

ALSO READ: High Court setback for disgraced former Steinhoff CEO Markus Jooste

Accompanied by a select group of the company’s managers, Jooste stands accused of orchestrating a fraudulent scheme that involved fabricating billions of euros in profits.

These findings emerged from an investigative report commissioned by Steinhoff to uncover the truth behind the company’s operations.

Notably, two former colleagues of Jooste – Siegmar Schmidt and Dirk Schreiber – verified certain significant aspects of the report. They were themselves on trial in Germany, facing charges related to the accounting fraud that Jooste is also being accused of.

During the proceedings, the German court learnt how the falsified profits were meticulously disguised to appear genuine. They were routed through various intermediary companies until they ultimately found their way onto Steinhoff’s primary financial records.