Steinhoff to dig deeper into $7.4bn of dodgy deals
The PwC report has shown how ex-execs structured phony transactions while further investigations are needed to answer remaining questions
Steinhoff International Holdings NV plans to dig deeper into the accounting misdeeds that brought the retailing giant to its knees as it seeks to get to the bottom of some $7.4 billion in fictitious or improper deals. A forensic probe by PwC found that a small group of former executives -- with the help of others outside the company -- structured phony transactions that substantially inflated earnings and asset values, according to a 10-page summary of the report published Friday. The deals, orchestrated over several years, enabled Steinhoff to artificially boost profits, puff-up property values and inflate cash and so-called cash equivalents.
PODCAST: Hear from the Steinhoff whistleblowers..