Picture: Supplied
Two former Steinhoff executives handed themselves over to the Hawks’ Serious Commercial Crime Investigation unit in Pretoria on Friday morning.
This was revealed by police spokesperson Lieutenant Colonel Christopher Singo.
The pair, Hein Odendaal, 67, and Iwan Peter Schelbert, 62, appeared in the Pretoria Specialised Commercial Crimes Court on the same day.
They face charges that include contraventions of the Prevention of Organised Crime Act, the Financial Markets Act, the Companies Act, and the Prevention and Combatting of Corrupt Activities Act.
The arrests stem from what the National Prosecuting Authority (NPA) previously deemed “one of the biggest cases of corporate fraud in the history of South Africa”.
According to Singo, the investigation revealed that Steinhoff executives created fictitious transactions worth 6.5 billion euros (R197 billion), which significantly impacted share prices on both the Johannesburg Stock Exchange (JSE) and Frankfurt Security Exchange (FSE).
The fraud was uncovered in 2017 when Steinhoff’s auditors refused to sign off on the 2016 annual financial statements.
“During the financial years of 2014 until 2016, Steinhoff had been submitting false misleading financial statements,” Singo said.
“The allegations became known in 2017, and during that period the value of Steinhoff shares dropped significantly, resulting in substantial prejudice to the investors who became victims of this fraudulent activities.”
The revelation led to a Stock Exchange News Service (SENS) announcement by the Steinhoff Group, informing shareholders that further investigation was required due to accounting irregularities.
ALSO READ: Almost R67 million from Steinhoff accused forfeited to the state
Odendaal served as managing director of two Steinhoff affiliates in the UK and was a longtime director of Steinhoff Africa Holdings and Steinhoff At Work, according to News24.
Meanwhile, Schelbert held the position of managing director at Steinhoff At Work from June 2004 until March 2018.
The pair appeared in court alongside Stéhan Grobler, Steinhoff’s former treasury head, who was arrested on fraud and racketeering charges in March last year.
Grobler, who worked at Steinhoff for almost two decades, has maintained his innocence.
The investigation has already secured its first major convictions.
Former Steinhoff CFO Andries “Ben” la Grange received a 10-year sentence in October last year.
However, five years of his sentence were suspended, after he pleaded guilty to fraud involving R367 million.
News24 reported that La Grange admitted to creating a fake handwritten invoice worth R376 million that he acknowledged was a “complete fabrication”.
In a separate development, Gerhardus Diedricks Burger was convicted of insider trading in September 2024.
At the time, NPA spokesperson Lumka Mahanjana, said the 79-year-old received a five-year prison sentence and must testify against his accomplices.
The court also ordered the confiscation of €90 000 (approximately R1.8 million) that Swiss authorities had seized.
ALSO READ: Former Steinhoff CFO Ben la Grange gets five years jail time after guilty plea for fraud
The case took a dramatic turn in March 2024 with the death of former Steinhoff CEO Markus Jooste.
His death came shortly after the Financial Sector Conduct Authority (FSCA) imposed a R475 million penalty.
According to the NPA, Jooste allegedly took his own life after learning of pending arrest warrants.
Western Cape South African Police Services Colonel Andre Traut confirmed the circumstances, stating that Jooste “sustained a gunshot wound at around 3:20pm at Kwaaiwater and succumbed to death on his way to the hospital”.
READ MORE: Steinhoff CEO Markus Jooste’s death still under investigation, police say
As the investigation progresses, authorities have taken action to recover assets.
In October, the South African Reserve Bank seized approximately R67 million from Grobler, including his R871 652 trust at Momentum Wealth.
The investigation continues into the multinational holding company, which was officially liquidated in October 2023.
Singo said the probe was handed over to the Hawks for further investigation.
NOW READ: What we know so far about the secret PwC report on Steinhoff
Download our app
