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Steinhoff share price plunge NEARS 90% as debt cut to junk

08 December 2017

That's down more than $4 billion from March 2017, when he was worth $5.6 billion.

"The resignation of Markus Jooste, Chief Executive Officer of Steinhoff International Holdings NV, and the announcement that "accounting irregularities" would require investigation, may be one of the biggest corporate scandals ever in South Africa", DA shadow minister of finance David Maynier said in a statement.

Jooste has apologised to the retail giant's staff.

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Steinhoff's shares fell by another 40 percent on Friday after Moody's cut its credit rating and raised concerns about the company's governance, deepening the South African retailer's problems and investor losses.

Steinhoff's share price has been decimated by the announcement‚ which follows weeks after German authorities announced an investigation into accounting fraud at the firm.

"Should further details of the accounting irregularities put additional pressure on Steinhoff's financial condition, this could lead to further downward pressure on the ratings", the ratings agency said in its note.

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This is over and above an internal investigation by the JSE to probe the extent of the accounting irregularities at Steinhoff. "South African legislation allows for appropriate action against any person who has not exercised his or her fiduciary responsibility to shareholders, some of whom are institutional and retirement funds", Treasury said.

"The minister expects that this report will give assurances that the interests of the shareholders are protected, including their retirement and savings funds", said Gigaba.

The Public Service Association (PSA) has called for the safeguarding of public servants' pension investments after the dramatic crash of retailer Steinhoff‚ which had lost R194-billion of its total market value by close of trading on Thursday.

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Meanwhile, lobby groups like the Business Leadership South Africa and the Black Business Council have all condemned Steinhoff's alleged "unethical and corrupt behaviour".

Steinhoff share price plunge NEARS 90% as debt cut to junk