Disgraced former CEO of Steinhoff Markus Jooste has been fined R122.9 million by the Financial Sector Conduct Authority (FSCA).
Businesstech reported that the penalty comes after the authority found that on 30 November 2017, shortly before the much-publicised significant decrease in the market value of Steinhoff shares, the former CEO was privy to Steinhoff-related inside information.
‘Whilst privy to inside information, he disclosed some of the information in a ‘warning SMS’ encouraging four individuals close to him to dispose of their Steinhoff shares prior to the publication of some of the inside information to the rest of the market. Three recipients acted on his disclosure and encouragement and sold Steinhoff shares,’ the FSCA said.
Steinhoff collapsed after accounting fraud was discovered in late 2017, wiping billions from its market value.
The FCSA penalised the following parties:
R161.5 million, plus interest – Markus Jooste, former Steinhoff CEO;
R3 million – Gerhardus Diedericks Burger, an acquaintance of Jooste, for selling his Steinhoff shares shortly after receiving an SMS from Jooste on 30 November 2017;
R18 328 – Marthinus Swiegelaar, Jooste’s chauffeur at the time, who reacted to Jooste’s warning SMS on 30 November 2017;
R115.8 million – Ocsan Investment Enterprises (Pty) Limited (Ocsan), a company that was controlled by Ockie Oosthuizen, an acquaintance of Jooste. Oosthuizen gave instructions for Ocsan’s sale of Steinhoff shares on 30 November 2017 after an SMS from Jooste.
The FSCA said: ‘Effectively, Mr Jooste is solely liable for R122 927 366 out of the R161 568 068. The difference consisting of the R38 622 374 and R18 328 being Ocsan and Mr Swiegelaar’s ill-gotten benefits that qualifies for disgorgement may be recovered once.’
The FCSA said Jooste also ‘deliberately misled investigators’ during questioning and ‘failed to provide meaningful cooperation’.
Businesstech reported that Jooste’s penalty also included an extra R1 million after he shared information and encouraged Jaap du Toit to sell his Steinhoff shares.
‘Notwithstanding the disclosure and encouragement, Mr du Toit never acted on the contents of the warning SMS,’ the FCSA said.