Christo Wiese on Steinhoff: ‘The wheels of justice are eventually beginning to turn’

The Steinhoff fraud was just too huge; it hurt far too many people and institutions, and it caused too much damage to be ignored: Christo Wiese, the former Steinhoff chair on Sarb, attaching Markus Jooste’s assets.

This interview was originally aired on RSG Geldsake and has been translated into English in this transcript.

RYK VAN NIEKERK: Yesterday, 28 October 2022, the SA Reserve Bank attached assets worth some R1.4 billion from former Steinhoff CEO Markus Jooste. These include various properties, works of art, vehicles and jewels, forming part of an investigation into alleged currency regulation violations. Ever since 2018 the bank has been investigating whether Jooste illegally took R4.8 billion offshore. In terms of legislation the Reserve Bank can seize assets related to such violations, regardless of the possessors. That is why the bank seized assets in the possession of other individuals, companies and trusts.

News24 also reported that while Jooste may continue to make use of the assets, and he may continue to reside in his house, he may not sell any of the assets.

Christo Wiese, the former Steinhoff chair, is on the line. He was the individual who lost the most money in the Steinhoff saga. Christo, a warm welcome to the programme. What is your reaction to these actions taken by the Reserve Bank five years after the Steinhoff collapse?

CHRISTO WIESE: Ryk, I think my reaction is in line with that of all South Africans, other than perhaps Mr Jooste himself, namely that we are happy that the wheels of justice are eventually beginning to turn, and that people will have to explain and accept responsibility for what they have done.

RYK VAN NIEKERK: It’s interesting that the Reserve Bank is the governing body to first pull the trigger, and it was not the criminal court, the Hawks or asset-forfeiture agencies who attached the assets. Were you surprised that the Reserve Bank took the first steps?

CHRISTO WIESE: I do think it surprising, except if you consider that the Reserve Bank has much wider powers than these other bodies may necessarily have, and that it has access to sources that other agencies will also struggle to gain access to. If these swindlers start shifting accounts between offshore trusts and so-called tax havens and the like, then it becomes very difficult to catch them, But the Reserve Bank has access to sources that others don’t necessarily have.

RYK VAN NIEKERK: I think it’s often said that this case is very complex, and that is why our prosecutory authorities are slow in pulling the trigger and laying criminal charges and to start the process of prosecution. Even Germany, which has not yet begun a prosecutory process is still looking into complaints. Do you think we will ever see justice?

CHRISTO WIESE: I have no doubt, Ryk. I don’t doubt that at all. The fraud was just too huge, it hurt far too many people and institutions, it caused just too much damage to be ignored.

But you must expect that these people, who will follow the example of some politicians with a so-called Stalingrad defence, will all try every trick in the book.

And with regard to Jooste, who claimed to have handed over his whole estate to his creditors five years ago, in other words in some sort of voluntary sequestration, one wonders where he gets the money to pay for this expensive legal aid, because he is repeatedly involved in lawsuits, just as he will be here, because he has the right to try and have this attachment order set aside.

RYK VAN NIEKERK: There are assets worth R4.1 billion, according to the Reserve Bank.

CHRISTO WIESE: That’s right. That is but one of the things unique to the whole Jooste affair – and where does that come from? But hopefully that will be cleared up by this investigation. We hope so.

RYK VAN NIEKERK: One of the assets that has now been attached is the Lanzerac [wine] Estate in Stellenbosch, which you sold some 10 years ago to a consortium, in which he, Markus Jooste, was involved, and you are involved in a court case to get this estate back. What is the state of that court case to get Lanzerac back?

CHRISTO WIESE: Look, we sued him some years ago to get that transaction voided, because he paid us with shares derived from a fraudulent situation, as it now appears, so we have every hope that we will get that transaction set aside in time, and this court case could assist us in that regard.

RYK VAN NIEKERK: Very little is known about the German investigation or process. Have you been interrogated or have you provided the Germans with information to perhaps strengthen their case?

CHRISTO WIESE: No, no. I have worked together with the South African prosecutory authorities who laid charges, explaining matters, but I have never been approached by the German prosecutory authority or in their investigations. My impression is that they are essentially focusing on what he did in their jurisdiction.

RYK VAN NIEKERK: We’ll leave it there. Christo, many thanks for you time. I’m sure we will keep an eye on this story.

CHRISTO WIESE: Ryk, I think we will still have a great deal of opportunity to chat about this.

RYK VAN NIEKERK: I’m sure of that. As you say, the wheels of justice must turn. This is such a big fraud that it can’t go on forever. There has to be prosecution and investors have lost around R2 billion.

The PwC investigation has referred to fraud of more than R100 billion, and now the first R4 billion attachment has been executed.

This article originally appeared on Moneyweb and was republished with permission.
Read the original article here.

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