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Poundland boss commits suicide during arrest in South Africa after £19m fine

Report Poundland boss commits suicide during arrest in South Africa after £19m fine – Markus Johannes Jooste, a South African businessman and the CEO of Steinhoff International, tragically committed suicide on March 21, 2024, at his home in Hermanus, South Africa. He was 63 years old. The suicide occurred a day before he was to hand himself over to law enforcement, marking a tragic end to a career that was marred by a series of scandals and legal troubles.

Jooste’s career was marked by a series of highs and lows, including a period of rapid expansion and acquisitions that transformed Steinhoff International from a small furniture manufacturer into a large corporation in the furniture industry. His tenure saw the acquisition of Conforama in 2011, Mattress Firm for $2.4 billion, and Poundland for £597 million, despite the latter acquisition being made in depressed retail conditions.

Poundland boss commits suicide during arrest in South Africa after £19m fine
Poundland boss commits suicide during arrest in South Africa after £19m fine

Key Facts:

  • Markus Jooste, former CEO of Steinhoff International Holdings, died from a gunshot wound a day after being ordered to pay a $25 million fine for his role in a massive corporate fraud scandal.
  • The scandal involved the publishing of misleading financial statements, leading to the inflation of profits and asset values by $6.5 billion.
  • The scandal resulted in nearly 98% of Steinhoff’s share value being wiped out in 2017, affecting investors in South African pension funds.
  • Despite resigning and denying any knowledge of accounting fraud, Jooste was later fined for insider trading in 2020.
  • The incident has raised questions about corporate ethics, responsibility, and the consequences of unchecked ambition.

However, Jooste’s career was overshadowed by a major scandal involving Steinhoff International, which led to a significant drop in the company’s share price and a subsequent investigation into accounting irregularities. The scandal, which was labeled as the biggest corporate scandal in South African history, saw Steinhoff’s share price plunge from R46.25 to R10, and its bonds fall from investment grade to junk. The scandal also had a ripple effect on several other companies, including Steinhoff Africa Retail (Star), which may have guaranteed some of Steinhoff’s debt.

Poundland boss commits suicide during arrest in South Africa after £19m fine
Poundland boss commits suicide during arrest in South Africa after £19m fine

Following the scandal, Jooste resigned as CEO of Steinhoff International on December 5, 2017, after a dispute with business partner Andreas Seifert and allegations of inflated profit and asset values. His resignation was followed by a protracted controversy concerning Steinhoff’s accounting practices, which led to a significant loss of value for the company. The ensuing investigation by PwC directly linked Jooste and his CFO Ben la Grange to widespread fictitious transactions and accounting irregularities.

The investigation into Steinhoff’s accounting practices revealed that the company had engaged in off-balance-sheet deals with third parties, leading to a significant loss of value for the company. The investigation also found that Jooste and his CFO had claimed R870 million from Jooste and R272 million from Ben la Grange in a summons lodged at the high court in Cape Town, aiming to recoup salaries and bonuses.

In the wake of the scandal, Jooste faced legal challenges, including a claim of R740 million instituted against him and his former colleague Ben la Grange by Jaap du Toit and the trustees of Le Toit Trust. The claim related to PSG shares which Du Toit swapped for Steinhoff shares in 2015.

Poundland boss commits suicide during arrest in South Africa after £19m fine
Poundland boss commits suicide during arrest in South Africa after £19m fine

Despite the legal challenges and the scandal, Jooste continued to be involved in the horse racing industry, becoming the second biggest horse-racing investor in Africa. His horse racing interests were managed through Mayfair Speculators, a wholly owned subsidiary of Mayfair Holdings.

Jooste’s death by suicide marks a tragic end to a career that was characterized by both success and scandal. His legacy will be remembered for the significant impact he had on Steinhoff International and the broader South African economy, as well as his contributions to the horse racing industry.

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