QUARTERLY UPDATE
Steinhoff: mess began in central Europe
Steinhoff chairwoman Heather Sonn said it appeared that the group’s "accounting irregularities" related largely to its central European business. She also said that in addition to the €6bn of assets that might not be recoverable, profits might have been overstated and further material impairments might be needed. In a statement attached to the quarterly update released late on Wednesday, Sonn cautioned that the PwC investigation was still at an early stage. "The task is substantial, complex and time-consuming, involving interaction with Deloitte, third parties, regulators and Steinhoff entities and employees, current and former." PwC has conducted interviews with current and former executives and has collected raw data from computers, cellphones and servers. A key focus is off-balance sheet structures and transactions with certain closely related parties. Sonn said that following the events of early December, the group’s essential capital, especially in its businesses outside SA, ha...
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