Steinhoff's implosion shows how networking can go horribly wrong
The familiarity that enables the easy movement of capital and information is also what dulls the sense of scepticism
In the seven-page letter it sent to clients in January explaining why it was one of the largest investors in Steinhoff, Coronation Fund Managers referred to a long list of "highly respected business people" whose association with Steinhoff had given them comfort that the company was in good hands. They added a second list, which contained the names of members of the supervisory board who were deemed to be strong and independent and appeared to take their fiduciary responsibilities very seriously. The former list included Sean Summers, Andy Bond, Christo Wiese, Jannie Mouton and Louis van der Watt. On the latter list were Johan van Zyl, Steve Booysen, Theunie Lategan and Len Konar. Missing from the lists of individuals who provided comfort were the names of key players Thys du Toit and GT Ferreira. In June 2015, just ahead of the transfer of Steinhoff’s primary listing to Frankfurt, Du Toit had become a major investor in Steinhoff when he swopped more than R1bn of PSG shares for Stei...
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