PIC chimes in on Steinhoff debacle, but gives assurance about the GEPF
The Public Investment Corporation, which invests on behalf of the Government Employees Pension Fund, wants directors on the Steinhoff board
The Public Investment Corporation (PIC), which has been affected by the recent collapse in the value of Steinhoff shares and which invests on behalf of the Government Employees Pension Fund (GEPF), has added its voice to the Steinhoff debacle, saying corporate governance needs to be beefed up.The developments came after Markus Jooste resigned as CEO of the global consumer goods retailer last week amid an accounting scandal, which has had ripple effects throughout markets.In a joint statement on Wednesday, the two institutions said they would insist that Steinhoff and its subsidiary, Steinhoff Africa Retail (Star), appoint at least two, independent nonexecutive directors.They questioned the independence of the Steinhoff board, including the appointment of Christo Wiese as Steinhoff interim CEO, arguing that it raised a possible conflict of interest. Wiese is both chairperson and the biggest shareholder in the beleaguered company, which lost as much as R215bn in its market value in th...
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