Court papers in the Le Toit trust versus former Steinhoff CEO Markus Jooste and others show evidence that Jooste gave an associate a tip-off several days before the Steinhoff share implosion, about selling out of the company, warning of some impending bad news that would likely adversely hurt the Steinhoff share price. If proven to be true, this would be a case of insider trading, which is a criminal offence.
In November 2017, a Steinhoff share could be traded for around R65/share. By April 2018, the share price was around R1.20. It started to lose value in December 2017, when it was revealed that the auditors at the time could not sign off on Steinhoff books and that there had been accounting irregularities.
One of the bodies tasked with dealing with insider trading is the Financial Services Conduct Authority (FSCA). Nompu Siziba discusses the topic at hand with Brandon Topham, the divisional executive for investigations and enforcement at the FSCA.