Accounting body lays misconduct charges against Markus Jooste
CAPE TOWN – The South African Institute of Chartered Accountants (SAICA) said yesterday that following a lengthy investigation period, misconduct charges have been brought against former Steinhoff CEO Markus Jooste.
SAICA stated that Jooste behaved in a manner which “is dishonest, dishonorable, dishonest, irregular or unworthy, or which is derogatory to the Institute, or tends to discredit the accounting profession; and / or that he did not respect and did not respect the fundamental principles of the SAICA Code of Professional Conduct for Public Accountants ”.
In June 2019, the board of directors of SAICA decided not to accept Jooste’s resignation from the institute and instead to suspend his membership pending the finalization of the disciplinary proceedings against him.
The charges included violations of obligations relating to integrity, objectivity, confidentiality and professional conduct, SAICA said in a statement yesterday.
In addition, it had not responded in the event of non-compliance or suspected non-compliance with the Financial Markets Law 19 of 2012; and had conducted himself in a manner which is “discreditable, dishonest, dishonest, improper or unworthy, or which is derogatory to SAICA, or tends to discredit the accounting profession in that it has used inside information to deliberately discourage d ‘other people to invest in Steinhoff’.
Jooste had also been dishonest in that he knew Steinhoff faced closer scrutiny from his external auditor over accounting irregularities as Mayfair speculators sought further advances from Investec through a loan debit.
As executive director of Mayfair Speculators, Jooste had also approved the distribution of the cash dividend to Mayfair despite being aware that Steinhoff’s share price was likely to be affected very negatively by matters to his knowledge.
He also failed to disclose various accounting irregularities contained in Steinhoff’s annual financial statements and instead made false statements regarding those irregularities.
Jooste had also made material misrepresentation to Steinhoff’s audit committee and to parliament regarding allegations of accounting irregularities in the annual financial statements.