Gigaba to meet Steinhoff stakeholders over governance issues
The Finance Minister will meet a slew of industry bodies, including the PIC, the CEO Initiative, SARS, the FSB and the Independent Regulatory Board for Auditors
Finance Minister Malusi Gigaba is meeting several stakeholders on Friday about the Steinhoff crash.
A media invitation states that Gigaba is meeting with the CEO Initiative‚ Manufacturing Circle‚ JSE‚ Government Employees Pension Fund (GEPF)‚ Public Investment Corporation (PIC)‚ South African Revenue Service (SARS)‚ Financial Service Board (FSB)‚ and the Independent Regulatory Board for Auditors (Irba) on Friday in Sandton‚ Johannesburg.
The GEPF and PIC said on Wednesday they are "deeply concerned" about the collapse of Steinhoff and believe it points to "serious governance challenges".
"The GEPF and PIC believe that, now more than ever‚ the Steinhoff matter makes a case for the need to rotate auditors and long-serving board members in investee companies‚ an issue the PIC has continuously raised."
Steinhoff’s share price dropped from R46.60 at close of trading on Tuesday last week to just R6 on Friday, and was at R8.92 at the close on Thursday. The company has reported R100bn is missing in its European operations. Markus Jooste resigned as the CEO of Steinhoff last week.
The GEPF and PIC want Steinhoff and Steinhoff Africa Retail (Star) to appoint at least two, independent non-executive directors on their boards and want to highlight "their discomfort with the lack of independence of the board".
"The PIC has previously pointed out structural issues relating to the material shareholding of the Steinhoff and [Christo] Wiese families‚ which are perceived to create the dominance of controlling shareholder representatives on the board and‚ as a result‚ potential conflicts of interest."
The Department of Trade and Industry and the Companies and Intellectual Property Commission announced on Tuesday that they plan to launch an investigation into allegations of non-compliance by Steinhoff with the Companies Act and its regulations.