In a year when there has been populist rhetoric directed against "white monopoly capital" and a rise in antibusiness sentiment generally, the last thing corporate SA needed was a large and damaging scandal. And what a scandal Steinhoff is, even though the gory details are as yet unknown. More than R150bn has been wiped off the value of the Steinhoff share this week since the company’s board announced an investigation into "accounting irregularities" and the immediate resignation of CEO Markus Jooste. The board’s subsequent efforts to reassure the market with vague media releases about asset sales and liquidity have simply made things worse, raising even more questions about the real story of the "irregularities" and about Steinhoff’s financial position. And the longer Steinhoff takes to come clean on the details, the more value is likely to be lost not only on Steinhoff but across the equity market. The taint has infected all the firms associated with Steinhoff and its chairman, Chr...
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