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Two More Former Steinhoff Executives Arrested in R197 Billion Fraud Case
The long-running Steinhoff fraud saga has taken another turn, with two former executives turning themselves in to authorities in Pretoria. Hein Odendaal (67) and Iwan Peter Schelbert (62) surrendered to the Hawks’ Serious Commercial Crime Investigation unit on Friday morning before appearing in the Pretoria Specialised Commercial Crimes Court.
They now face charges under several financial and anti-corruption laws, including the Prevention of Organised Crime Act, the Financial Markets Act, and the Companies Act.
Steinhoff’s R197 Billion Fraud Scandal
The Steinhoff fraud case has been described as one of South Africa’s biggest corporate scandals. Authorities uncovered fictitious transactions worth €6.5 billion (R197 billion), which caused Steinhoff shares to plummet on both the Johannesburg Stock Exchange (JSE) and the Frankfurt Stock Exchange (FSE).
The fraud came to light in 2017 when Steinhoff’s auditors refused to sign off on the 2016 financial statements, exposing years of financial misrepresentation. The scandal left investors with massive losses, triggering regulatory investigations and legal action worldwide.
Who Are the New Suspects?
Both Odendaal and Schelbert held senior positions within Steinhoff:
- Hein Odendaal was a managing director at Steinhoff Africa Holdings and Steinhoff At Work.
- Iwan Peter Schelbert served as managing director of Steinhoff At Work from 2004 to 2018.
They appeared in court alongside Stéhan Grobler, Steinhoff’s former treasury head, who was arrested in March 2024 for fraud and racketeering.
Ongoing Convictions and Sentences
Authorities have already secured convictions in the Steinhoff fraud case:
- Former CFO Andries “Ben” la Grange received a 10-year prison sentence in October 2024. However, five years were suspended after he admitted to fabricating a R376 million invoice.
- Gerhardus Diedricks Burger was convicted of insider trading in September 2024 and sentenced to five years in prison. His €90 000 (R1.8 million) assets were confiscated.
Steinhoff’s Former CEO Markus Jooste’s Death
The case took a tragic turn in March 2024 when former CEO Markus Jooste died from a self-inflicted gunshot wound shortly after the Financial Sector Conduct Authority (FSCA) issued a R475 million fine against him. Authorities continue investigating the circumstances of his death.
Asset Seizures and Financial Recovery Efforts
Efforts to recover stolen assets are ongoing. In October 2024, the South African Reserve Bank seized R67 million from Grobler, including an R871 652 trust at Momentum Wealth.
With the Hawks now leading the investigation, authorities are determined to hold more individuals accountable as the Steinhoff fraud case unfolds.
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