Markus Jooste fights back against R162m insider trading fine

Markus Jooste. Photo: Jaco Marais/Netwerk24

  • Disgraced Steinhoff CEO Markus Jooste has appealed a R162 million insider trading fine.
  • The Financial Sector Tribunal is anticipated to listen to his case within the first half of 2021.
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Disgraced former CEO of Steinhoff Markus Jooste has appealed a R162 million fine for sending SMS warnings about Steinhoff’s share worth to 4 associates.

He was also ordered to pay the costs that the Financial Sector Conduct Authority (FSCA) incurred within the insider trading investigation, and is collectively accountable for round R56 million in fines issued to the recipients of the SMSes. If they will’t afford to pay, he has to cover for them.

Jooste was presupposed to pay the money inside a month after the fine was issued on the finish of October final year.

Instead, he has taken the matter on evaluation to the Financial Sector Tribunal, says Brandon Topham, divisional government for investigations and enforcement on the FSCA. The independent tribunal was established in 2019 to rethink the findings of the FSCA and numerous ombuds.

“A date has not been set yet for the matter to be heard but will be in the first half of this year. Thereafter there is always the chance of further appeals to the higher courts,” Topham informed Business Insider SA.

“Regardless, this will not settle the FSCA’s various investigations. We have open matters relating to the false and misleading statements made in the Steinhoff financial statements and other public statements by individuals linked to Steinhoff,” Topham mentioned.

Fin24 reported final year that their findings needs to be introduced in April 2021.

Jooste can also be going through a lot of lawsuits and a Hawks’ fraud and money laundering investigation.

The insider trading investigation adopted an SMS that Jooste despatched to Jaap du Toit, PSG founder and director, Jooste’s chauffeur Marthinus Swiegelaar, and two of his associates Ockie Oosthuizen and Dr Gerhardus Diedericks Burger.

“You always ask my opinion, it will take Steinhoff a long time to work through all the bad news and America. So there are better places to invest your money. Take the current price immediately. And delete this SMS and don’t mention it to anyone.”

Jooste’s SMS (translated from Afrikaans), despatched on 30 November 2017

READ | What we all know in regards to the males who acquired a R241m warning SMS from Markus Jooste

On 5 December 2017, Jooste resigned as Steinhoff CEO after auditors Deloitte refused to log off on the company’s outcomes for the monetary year to end-September of that year.

Then adopted probably the most important company crash – and uncovering of fraud – in South Africa’s historical past. Steinhoff’s share worth crashed 90% and buyers lost R200 billion. 

Only Du Toit didn’t act following the message, and was spared a fine.

Business Insider SA approached Jooste’s lawyer for remark.

(Compiled by Helena Wasserman)

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