Financial Services Board awaits report on Steinhoff dealings

JOHANNESBURG – The Financial Services Board says it is awaiting detailed reports from several institutions (local and international) on their dealings with Steinhoff International in recent years.

The embattled furniture retailer has lost over 90% of its stock value on the JSE following the resignation of CEO Markus Jooste amid allegations of accounting irregularities.

Things further worsened when Moody’s, a global ratings agency further downgraded Steinhoff International by four notches, placing the company under junk status last week.

Economists believe Steinhoff needs a new leader who will place and implement effective measures in-order to retain back the status of the company.

Trade union Fedusa says it is more concerned about potential job losses and will on Monday meet with the Public Investment Corporation to find ways to salvage workers’ pensions.

“We are more concerned about the impact if things are not sorted out quickly as there’s many people depending on Steinhoff. People are concerned about their job security and whether they’ll lose their jobs…,” Fedusa’s Dennis George said.

The Financial Services board says investigations on the alleged accounting irregularities of the Steinhoff are underway but detailed reports from all the institutions that have worked with the company will help resolve the issue as early as possible.

Image on Money web

Be the first to comment

Leave a Reply

Your email address will not be published.