Business Report writes that the Public Servants Association of SA (PSA) and the Public Investment Corporation (PIC) announced on Thursday that they would be pursuing a class action lawsuit against Steinhoff International.
The aim would be to recoup around R17bn of pensioners’ money wiped out in the wake of an accounting scandal in December last year. The PIC is the investment agent on behalf of a number of state funds, including the Government Employers Pension Fund (GEPF), whose members include PSA members. The PIC is the second largest shareholder in Steinhoff with an 8.5% stake. The troubled retailer has seen its share price decline by 85% and R200bn wiped off its market capitalisation since it admitted to accounting irregularities last year. PSA general manager Ivan Fredericks confirmed that they were going ahead with the claim “because it is clear from our side that there was a maladministration that took place at Steinhoff,” which he said pointed to issues of bad corporate governance by the former chief executive Markus Jooste and some of the directors. "Steinhoff is slowly becoming a shell. We want to try and recoup losses before it is too late," the PSA’s Tahir Maepa indicated. On 19 January, PSA members marched on Steinhoff’s offices in Stellenbosch to demand access to company documents.
- Read this report by Sandile Mchunu in full at Business Report
- Read too, PSA union in legal steps against Steinhoff, at BusinessLive
- And also, Steinhoff CEO Jooste repeatedly lied to authorities, says PSA union, at eNCA
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