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Forensic report in Steinhoff shows that top managers have inflated profits for years

Steinhoff International [JSE:SNH] announced on Friday afternoon that a "small group" of former Steinhoff executives, in collaboration with executives at other companies, had inflated the profit and asset values ​​of the Steinhoff group for years.

This was included in an overview of a forensic investigation into the company's financial statements, conducted by PricewaterhouseCoopers Advisory Services.

The Stellenbosch retailer, headquartered, made an overview of 11 pages of the probe public on Friday nights.

"The PwC study found a communication pattern showing that senior management instructs a small number of other Steinhoff executives to carry out those instructions, often with the help of a small number of people who are not in the Steinhoff group. be of service, "he said.

According to the overview, the managers cover up the obsolete documents to hide their mistakes.

"The transactions that are classified as irregular are complex, involved several entities over a number of years and were supported by documents, including legal documents and other professional opinions that in many cases were made after the fact and are retroactive."

PwC was hired to conduct an independent forensic investigation into the multinational retailer at the end of 2017, following the abrupt departure of its CEO Markus Jooste, after the company's auditors noted accounting irregularities in its financial statements.

The share price of the group fell in the wake of Jooste's resignation, causing market capitalization to fall by R200 billion.

The forensic report findings were postponed twice before they were submitted to Steinhoff earlier in the month.

Read the report below:

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