Steinhoff’s Financial Allegations takes its fresh twist to Court

The Steinhoff accounting fraud allegations took a fresh twist on Monday, when the company said in a Sens statement that a Dutch court had been petitioned over its accounts for the period to September 30 2016.

In a statement headlined, "Update on disputes with former joint venture partner", Steinhoff reiterated that its accounts complied with the requirements of international financial reporting standards (IFRS), and expressed confidence that the appeal would be dismissed.
The petition, brought by OM Handels and MW Handels, was for a proceeding in Enterprise Chamber of the Amsterdam Court of Appeal, and will be heard on Thursday.

Steinhoff’s shares were hammered in August, when a German magazine reported that CEO Markus Jooste and other executives were under investigation for accounting fraud.
Steinhoff strenuously denied the allegations, and said the source of that story was a former joint venture partner embroiled in litigation with Steinhoff subsidiaries.
It also said it had discussed the story with its credit rating agency, Moody’s, which was "100% satisfied".

This latest petition by the former partner comes days before Steinhoff lists Steinhoff African Retail (Star), set for Wednesday.
Steinhoff said on Monday: "The dispute (also referred to in a press release of August 24 2017, in the 2017 bond prospectus and the 2015 listing prospectus) relates to the resolution of the redemption of a joint venture in a European retail venture which is currently pending for hearing in Germany.
"The petition covers the treatment of a joint investment. The company consolidated the investment (as prescribed and in compliance with IFRS). 

"In order to strengthen his case, the opposing party is questioning the consolidation.
"Steinhoff has appointed legal and external audit firms in Germany to investigate the matter independently. They have concluded that no evidence exists of any wrongdoing. Therefore, Steinhoff sees itself in a strong position and welcomes the opportunity to formally disprove these allegations."

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