SteinhoffIOL News reports that the Department of Trade and Industry (DTI) has directed the Companies and Intellectual Property Commission (CIPC) to launch an investigation into possible non-compliance with the Companies Act by the SA-based global retailer Steinhoff.  

This comes after the company faced a near collapse following revelations of financial irregularities, with its share price tumbling by about 80% last week, although there was a modest recovery by Tuesday.  The investigation will start before the end of the year.  There could be dire consequences for the company executives and auditors if the CIPC finds any wrongdoing.  The chairperson of the parliamentary finance committee, Yunus Carrim, said the Steinhoff scandal confirmed the need for tighter regulation and monitoring of companies.  “We are concerned not just about the financial losses suffered by the Public Investment Corporation (PIC), the Government Employees Pension Fund (GEPF) and the government employees they represent, but also about the prospects of major job losses for workers in Steinhoff companies,” Carrim pointed out.

Get other news reports at the SA Labour News home page