Steinhoff admits its 2016 financials can’t be trusted

Global retail company Steinhoff said on Thursday its 2016 consolidated financial statements would need to be restated and could no longer be relied upon

Steinhoff CEO Markus Jooste resigned last week after the company said it had uncovered accounting irregularities, setting off a run from investors which have slashed billions of rand off its value.

On Thursday, Steinhoff said issues concerning the validity and recoverability of certain Steinhoff Europe balance sheet assets under scrutiny in the 2017 audit work were also relevant to the 2016 consolidated financial statements.

“Therefore, the Company announces that, based on section 2:362 (6) of the Dutch Civil Code, the 2016 consolidated financial statements will need to be restated and can no longer be relied upon,” it said.

READ MORE: DTI to probe Steinhoff compliance with companies law

On Tuesday, South Africa’s trade and industry department said it would launch an investigation into the alleged governance failures and financial irregularities at retailer Steinhoff to determine any non-compliance with the Companies Act and Regulations.

South Africa’s main opposition DA said last week it had requested a probe into Steinhoff auditor Deloitte over its role in what it said “may be one of the biggest corporate scandals ever in South Africa”.

– African News Agency