NPA scores Steinhoff victory

Image source: Burmakin Andrey – 123RF.com

This after the Specialised Commercial Crimes Court in Pretoria sentenced former Steinhoff physician, Dr Gerhardus Burger, to some five years imprisonment – wholly suspended for five years, if he is not found guilty of contravention of section 78(2) of the Financial Markets Act within that period.

According to the NPA spokesperson, Lumka Mahanjana, Burger also has to “testify in the criminal proceedings against his accomplices”.

“The court also issued a confiscation order for €90,000, which is about R1.8m, seized by Swiss authorities after the collapse of Steinhoff. This is after Dr Burger pleaded guilty to three counts of insider trading and was convicted as such when he appeared in court.

“The Steinhoff case, one of the biggest cases of corporate fraud in the history of South Africa, has been one of the most complex commercial crime cases that the [Hawks] and the NPA have had to deal with.

“At a point when a significant breakthrough was made to enrol the case earlier this year, the main accused, ex-CEO of Steinhoff, Markus Jooste, took his life on the eve of his arrest, thus escaping the hands of justice when it mattered the most,” she said.

Former Steinhoff director appears in court for fraud, racketeering

26 Mar 2024

The spokesperson explained that just before the Steinhoff collapse, the late CEO sent Burger, who accompanied Steinhoff directors on overseas trips to look after their health, a text advising him to sell his Steinhoff shares.

“Burger thereafter sold all the Steinhoff shares held under the Dieter Burger and Lane Burger Trusts where his children are beneficiaries. He also sold 39,722 Steinhoff shares held at Stefana Overseas Ltd, where Dr Burger was also the beneficiary, on the Swiss stock exchange.

“Shortly after the sale of the shares, Steinhoff shares plummeted and became almost worthless. At that point the Financial Sector Conduct Authority (FSCA) instituted investigations where Dr Burger was convicted and found guilty of insider trading for the same transactions and paid a penalty of R3m to FSCA. FSCA then referred the matter to the NPA for criminal prosecution.

“The National Prosecuting Authority welcomes the conviction and sentence. It is important for the public to understand that criminal prosecutions require patience, preparation, and a certain measure of certainty,” Mahanjana said.