You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Steinhoff’s Jooste accused of ‘naked fraud’

Liquidation hearing postponed to January as it has ‘far-reaching’ implications.
Markus Jooste Picture: Moneyweb

The liquidation hearing of Markus Jooste-owned Mayfair Speculators was postponed to next year, after Judge Siraj Desai ruled that the matter needs a full hearing, as it has far-reaching implications.

In court papers supporting the liquidation application, Absa accuses Jooste and Stefan Potgieter, his son-in-law and currently the sole director of Mayfair Speculators, of “naked fraud” following representations made to Investec and the transfer of assets from Mayfair Speculators to its holding company.

Gavin Woodland SC for Absa. Picture: Tony Beamish

The court papers suggest that Mayfair Speculators owes three banks more than R1.2 billion. Absa claims R226 million, whilst Investec and Sanlam are owed R250 million and R800 million respectively.

Also read: Absa applies for Jooste-linked company’s liquidation

Brendan Manca SC on the right for Mayfair. Picture: Tony Beamish

These loans were secured by Mayfair Speculators’ holding of Steinhoff shares. The banks have now called up these loans after Steinhoff’s shares fell from around R60 to less than R5 in recent weeks, following one of the largest ever corporate scandals in South Africa.

Judge Desai said during the hearing that the matter is of “great importance” for several parties and postponed the matter to late in January.

In an explosive affidavit dated December 17, which includes more detailed information than the affidavit signed on December 14 on which this article was based, Absa manager Hester van Niekerk alleges that Jooste concluded several finance transactions prior to Steinhoff’s board announcement on December 6. She says Jooste must have known at that stage that there were financial irregularities in Steinhoff and that this would negatively affect the share price.

She says Mayfair Speculators, represented by Potgieter, with the backing of Jooste, “induced Investec at the end of November to advance a further amount of R93 509 000 as recorded by Investec (in its application), both Potgieter and Jooste must have known, when Speculators applied for and received the further advance from Investec, that the collapse in the Steinhoff share price was imminent. They intentionally failed to disclose these facts to Investec.”

Elsewhere in the affidavit, she says: “There can also be little doubt that the conduct of Potgieter and Jooste in inducing Investec to advance a further amount of approximately R95 million to Speculators on 29 November 2017 was also nothing less than naked fraud. It constituted a further step in the fraudulent course of conduct.”

Van Niekerk also states that the transaction concluded in August through which assets of around R1.5 billion were moved from Mayfair Speculators to Mayfair Holdings constitutes fraud.

“The Applicant (Absa) contends that in declaring the dividend in specie to (Mayfair) Holdings, (Mayfair) Speculators effectively disposed of assets to the value of R1.5 billion when Jooste was a director.

“Jooste and Potgieter knew that when these facts (regarding the financial irregularities) came to light, Steinhoff’s shares would plummet, the loans to the Applicant, Sanlam and Investec would become due and payable and (Mayfair) Speculators would not have sufficient liquidity to discharge those debts. The inevitable consequence would be that there would be an application for the winding-up of (Mayfair) Speculators and that the assets which formed the subject of the dividend in specie would remain ‘trapped’ in the estate of Speculators and be sold by the liquidators in order to discharge the debts owed to the three lenders.

“In the circumstances, the declaration of the dividend in specie by (Mayfair) Speculators in favour of (Mayfair) Holdings constituted nothing less than a fraud, the aim of which was to denude (Mayfair) Speculators of its assets so as to benefit Holdings and the Silver Oak Trust and its beneficiaries which are, in all likelihood, Jooste and his family.”

The only directors of both Mayfair Speculators and Mayfair holders were Jooste and his son-in-law, Stefan Potgieter. Jooste has subsequently resigned. The affidavit also alleges that Mayfair Holdings has liabilities of approximately R1.47 billion and assets of R108 million.

Mayfair has not yet filed responding papers and is expected to do so before next year’s hearing.

Read the full court order and affidavit here.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

AUTHOR PROFILE

COMMENTS   28

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

brilliant – more jail time

take note : the former CEO’s of Sanlam and ABSA are on supervisory board of Steinhoff, and these two companies lent well over a billion to the Steinhoff CEO, secured by Steinhoff shares.

what sensible reasons exist for an individual to borrow a billion rand? The name of Jooste’s company should have been enough of a red flag…

If I were to try and borrow against a basket of Apple, Google, Visa, Accenture, Priceline shares (none of which I am CEO of), the banks would require 3x cover and each share is rock solid, massive, widely held.

What score came back on these Jooste loans???

You need to focus on the nature of the Sanlam exposure to Jooste-linked companies and the role van Zyl played to facilitate this exposure. Clue: when did van Zyl join the Steinhoff Board and when did Sanlam take on this R800m exposure?

Don’t telle you’ve never heard of Die Broederbond

Don’t tel me you’ve never heard of Die Broederbond

This is what’s called White Monopoly Capital.

A seat or two have become available at the Stellenbosch Boere Mafia luncheon club.

Adv. Gavin Woodland SC has some previous experience with Mr Christo Wiese’s companies. He acted for one of the parties during the Tollgate Holdings Liquidation hearings. Absa was a party then as well.

So this “Super Afrikaner” turned out to be nothing but a fraud! En om te dink dominee het vir ALMAL gese vat ‘n wonderlike man hierdie is…Ja broeders hy is een van ONS…Godgegewe aan ons!

Hmm me thinks there a quite a few of these “Super Afrikaner” frauds running around in Skelembosch! 🙂

Run Jooste ! Run Jooste !

Makes nkandla look like petty cash

Nkandla was taxpayers’ money in which the taxpayer had no say.

Jooste’s private company is his affair – nothing to do with taxpayers

But then – if you want to slate SA from down under – then anything goes.

rubbish – jooste ran a public company in which govt and many people invested their money. anyway comments from the uk are out of place here!

Look, it’s bloviating Bob adding his 2c worth of bullsh..
Bought your flac jacket yet? For your Jan ’18 visit? Best to wait for the early Jan sales.

Bob you have a lot say about a country you don’t live in.
Continue commenting on matters of which you read about on the interweb mate

yeah but some of my wealth still resides there and I will be voting in 2019!

Correct – – Bob is spinning stories about his flight to AUS.

Suddenly, when MW readers take him on, he is still invested in SA – WOW – just another story.

Anyway – whatever gets him through the night – – – – – – –

I find the JSE and the FSB absolutely useless in implementing regulations, not to mention the fact that the auditing firms are useless in implementing auditing rules.

The reason for this can be found in military strategy. No matter how well-trained your troops are, how fit and alert they are, and how good your strategy is, the party that has the element of surprise on his side, has the advantage.

This is why, after endless rounds of legislation, no regulatory body in the world can stop a clever crook with the element of surprise on his side, from defrauding investors. The financial marketplace is like guerrilla warfare – you simply cannot patrol the whole territory all of the time. The only strategy you as a regulatory body can follow, is to cover the area where most perpetrators cross regularly, and then search-and-destroy those perpetrators who successfully cross in remote areas.

It takes a Sun Tzu to catch a Markus Jooste.

If I was MJ I would have left SA already, off to somewhere where there is no extradition. Maybe he has left?

Jooste should be in line for a senior Government position or head of a SOE! With credentials like this he ticks all the right boxes.

A sophisticated rogue, a cheat and a gambler. How many thousands of jobs are at risk?

A sophisticated rogue, a cheat and a gambler. How many thousands of jobs are at risk?

if you have a spare moment or two – trawl youtube and search for Steinhoff/markus jooste/Christo Wiese. there you will find all the journos and analyst drooling over this bunch before the proverbial hit the fan. this has to be one of the nest – alec hogg at his best (worst)!!!

https://www.youtube.com/watch?v=wOq-jgxPx-I

Smart Alec Hogg had Steinhoff in his Champion Portfolio. Not very smart Alec!

He must have strayed into the gray zone some where along the line and never moved out.
Glad I never went there, once you are in everything becomes blurred. Guy like this walks over everything, wife and kids too.

Lots of comments but none that question the integrity and moral ethics of the business leaders we show to the world. This is the face we put forth in the world arena, people put their faith and funds into companies in part due to the personnel running them. That they buy fast horses and big castles to live in is irrelevant … the damage a twit like MJ does to our collective psychic internationally is immeasurable.

Naked fraud? – He looks terrible clothed, perish the thought of him in his birthday suit!

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: