South Africa’s retail sector is one of the most advanced on the African continent.
The sector has produced some notable billionaires, some of the richest in the region.
Jooste was among the top titans in the industry, building a multi-billion empire that crumbled on the back of an accounting irregularity and fraud.
In the end, he died lonely and condemned, and maybe his full side of the story unheard. Just maybe!
On March 21, 2024, word came out that Jooste had died of a gunshot wound.
The news just came days after South Africa’s financial regulator issued a record $25 million fine against the ex-CEO of Steinhoff for his role in what the media terms as the country’s largest corporate fraud.
Investigations are underway to ascertain whether there was foul play in his death.
South African police just said that he sustained a gunshot wound and died on his way to the hospital.
A separate police source told the media that the gunshot wound appeared self-inflicted.
The 63-year-old was accused by authorities of publishing false financial statements for the company from 2014 to 2017, which eventually led to the collapse of the retail giant and investors losing billions in investments.
Besides the record fine, the disgraced tycoon was also facing the risk of a jail term in South Africa and was further being sought by German authorities.
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Steinhoff: Greed and deception
Steinhoff International Holdings NV was one of the world’s largest retailers, emerging as the second-largest furniture distributor in Europe–dealing with top brands like Conforama and Poundland.
Jooste resigned from his position in December 2017 amidst allegations of financial irregularities and accounting fraud at Steinhoff, which led to a significant drop in the company’s stock price and massive losses for investors.
The scandal shook the business world, as Steinhoff was previously considered a major player in the global retail industry.
Jooste’s role in the scandal and its aftermath has been subject to extensive media coverage and legal investigations.
South Africa’s Financial Sector Conduct Authority last month said that Jooste “misled the market into believing Steinhoff International was more profitable, more cash positive and more resourced than what was indeed the case.”
According to investigators, Jooste was the architect of the plan that saw fictitious numbers boost the company’s numbers by up to $6.9 billion over more than a decade.
The company’s stock price plummeted, wiping out billions of dollars in shareholder value and leaving investors reeling.
The company lost 98 percent of its value. Last year, it was delisted from the Johannesburg Stock Exchange (JSE).
As investigations into the scandal unfolded, details emerged of a complex web of financial transactions and questionable accounting practices allegedly orchestrated by Jooste and other top executives at Steinhoff.
The scale of the alleged fraud was staggering, with some estimates suggesting that it could amount to billions of dollars.
Legal proceedings were launched against him, and he faced mounting pressure from regulators, investors, and the public to be held to account for his actions.
Critics said that the legacy of his misdeeds was a cautionary tale of the dangers of unchecked corporate ambition and the devastating consequences of betrayal of trust.
Jooste’s early life and education
While details of Jooste’s early life and education are relatively sparse compared to the more widely known aspects of his career and the scandal that would later engulf him, it is evident that his years in business school played a crucial role in shaping his ambitions.
Markus Jooste was born on September 30, 1960, in the town of Upington, located in the Northern Cape province of South Africa.
Raised in a middle-class family, Jooste’s early life was marked by a keen interest in business and entrepreneurship.
He attended school in Upington before furthering his education at the University of Stellenbosch, where he pursued a Bachelor of Commerce degree.
During his time at university, Jooste demonstrated a natural aptitude for business and finance, laying the foundation for what would become a successful career in the corporate world.
Upon completing his undergraduate studies, he continued his education, earning a Bachelor of Accounting Honours degree from the University of Stellenbosch.
Armed with a solid academic background and a passion for commerce, Jooste embarked on his professional journey, setting his sights on making a mark in the business world.
His early years in the corporate arena would pave the way for his eventual rise to prominence as the CEO of Steinhoff International Holdings NV, one of the world’s largest retailers.
Shaking the foundations of the South African corporate world
The collapse of Steinhoff not only impacted Jooste but also affected several other individuals who were major stakeholders in the company.
While not all of them may be classified as billionaires, they were prominent figures in the business world.
1. Christo Wiese
Christo Wiese, a South African billionaire businessman, was the former chairman of Steinhoff and one of its largest shareholders.
Wiese had built his fortune through various investments and retail ventures like Shoprite.
The collapse of Steinhoff led to a significant loss in Wiese’s personal wealth, as his holdings in the company were heavily devalued.
2. Ben la Grange
Ben la Grange served as the Chief Financial Officer (CFO) of Steinhoff and was considered one of Jooste’s closest confidants.
He played a key role in the financial operations of the company.
Following the collapse, la Grange faced scrutiny and legal action for his involvement in the alleged accounting irregularities at Steinhoff.
3. Heather Sonn
Heather Sonn was appointed as the acting chairperson of Steinhoff following the resignation of Christo Wiese in the aftermath of the scandal.
Sonn, a seasoned corporate executive, was tasked with guiding the company through the turbulent aftermath of the collapse and overseeing efforts to restructure and rebuild.
4. Jayendra Naidoo
Jayendra Naidoo was a prominent South African businessman and former director of Steinhoff.
Naidoo’s association with the company and its subsequent collapse had repercussions for his reputation and business interests.
5. Theo Botha
Theo Botha is a well-known South African corporate governance expert and shareholder activist who had raised concerns about corporate governance practices at Steinhoff prior to the scandal.
Botha’s warnings about the company’s financial health and governance issues were largely ignored until the collapse exposed the extent of the problems.
Jooste’s associates facing trial
Jooste was not the only person linked to the collapse of the retail giant.
His sudden death leaves six associates on the stands to answer questions on their role in the multi-billion corporate heist.
The following associates are facing legal heat for their involvement:
- Stehan Grobler – Steinhoff Former Legal Head & Company Secretary
- Dirk Schreiber – Steinhoff’s former European finance chief
- Siegmar Schmidt – Ex Steinhoff-director
- George Alan Evans – A Geneva-based former banker
- Ben La Grange – Steinhoff Former CFO
- Berdine Odendaal – Jooste’s girlfriend
