Scopa demands answers from Steinhoff

September 9, 2014. Steinhoff results presentation.Markus Jooste CEO.Pic: RAYMOND PRESTON. © Sunday Times.

CAPE TOWN – Parliament’s Standing Committee on Public Accounts (Scopa) says it wants answers and accountability in the Steinhoff corruption scandal.

The embattled furniture retailer has been on the spotlight since the resignation of CEO Markus Jooste amid allegations of accounting irregularities.

The committee says it is not pleased with the way the issue is being handled and says it plans to summon the retail giant’s executives to Parliament early next year.

Scopa authorities say they want urgent action against those implicated in the whole accounting saga, adding that everyone involved should face the full might of the law.

Scopa is also calling for the South African Revenue Service (SARS) and the Reserve Bank to investigate the matter and bring everyone involved in corrupt activities to spotlight.

When accounting irregularities were first announced following the resignation of Markus Jooste, Steinhoff’s share price on the Johannesburg Stock Exchange plummeted by almost 90 percent, with the retail giant falling under sub-investment standard.

On Monday, the Johannesburg Stock Exchange (JSE) decided to spare Steinhoff and not to suspend trade as the scandal-hit retail giant managed to disclose as much price sensitive information as it was able to share.

Following this crucial announcement by the JSE, Steinhoff shares recovered by 40 percent from Friday close, but well below the R10-mark.

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