'Lengthy legal battle between Financial Sector Conduct Authority and ex-Steinhoff CEO Jooste likely'

CAPE TOWN - There could be a lengthy legal battle between the Financial Sector Conduct Authority (FSCA) and former Steinhoff CEO Markus Jooste, who is facing a R475 million penalty.

The FSCA found that Jooste and the company's former finance boss, Dirk Schreiber, published false, misleading or deceptive statements about Steinhoff International Holdings Limited and Steinhoff International Holdings NV.

The authority has been investigating what happened at the company since it collapsed in 2017, after allegedly creating R106 billion in fictitious profits.

Steinheist author Rob Rose said the financial regulator's findings vindicated those who maintained Steinhoff created massive fraud.

"Marcus Jooste has to pay this really immense precedent-setting fine to the authority, and I think the authority now expects there to be a massive legal fight over this. Certainly, you'd expect Marcus Jooste to try and appeal this amount."