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BusinessLive reports that in an unprecedented move, Steinhoff is claiming R870m from former CEO Markus Jooste and an additional R272m from former CFO Ben La Grange for "unjustified enrichment".
On top of those hefty bills, the furniture retailer is demanding interest and legal costs from the two former executives. But, Steinhoff is not just going after the incentives and bonuses paid to Jooste and La Grange. In a totally unexpected move, it is also going for their base salaries. The claim against Jooste dates from 2009 to 2015 and against La Grange from 2015 to early 2018. A summons, which contains a detailed list of the financial damage allegedly wreaked by Jooste, with the help of La Grange, in the final two years before the company’s share price collapsed, has been lodged with the high court in Cape Town. The 33-page summons directly links Jooste and La Grange to the widespread fictitious transactions and accounting irregularities that led to R200bn being wiped off Steinhoff’s share value in December 2017. Steinhoff said that if it had been aware of the "true facts", no base salary would have been paid and no bonuses or "award shares" granted. They were paid and granted on the "mistaken belief" they were due. Jooste has 10 days to respond to the unprecedented legal move and La Grange one month. The dramatic legal action is without precedent in SA and marks a significant departure from the corporate tradition of dealing with senior management crises behind closed doors.
- Read the full original of Ann Crotty’s report on the above story at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page