Steinhoff Scandal: The Role of Campion Group in South Africa’s Biggest Corporate Fraud

The Steinhoff scandal, South Africa’s largest corporate fraud to date, continues to unravel as new details emerge about the Campion Group’s role in the massive financial deception. PwC’s forensic report sheds light on how Steinhoff moved billions through third-party companies, complicating an already scandalous case of corporate corruption.

Steinhoff’s Shadow Dealings with Campion Group

By definition, third-party companies like Campion Group should operate independently of a business they work with. However, Steinhoff wasn’t hands-off—instead, it used Campion and its subsidiaries for questionable financial transactions, moving vast sums of money across multiple jurisdictions.

PwC’s investigation revealed that Steinhoff:

• Provided direct funding to Campion for deal-making
• Used Campion to move money around between entities
• Lacked proper oversight on transactions, creating opportunities for financial manipulation

According to PwC, “The deficiencies in accounting consolidations allowed transactions to be altered or deleted, increasing the risk of manipulation.”

How Steinhoff Moved Billions Through Campion

Campion, established in 2014, was the parent company of Fulcrum Investment Partners, which in turn owned 21 entities across the UK, Switzerland, South Africa, and Mauritius by December 2017.

Key transactions include:

• R4.6 billion investment in Fulcrum by Steinhoff
• R3.3 billion funneled through intercompany transactions
• R6.6 billion moved between different entities
• Funds written off to create tax losses in Mauritius

These financial maneuvers point to deliberate misrepresentation, allowing Steinhoff to artificially inflate its books between 2009 and 2017, resulting in a staggering €6.5 billion (R125 billion) fraud.

Deloitte Raised Red Flags, But It Was Too Late

PwC found that Deloitte, Steinhoff’s auditors at the time, had questioned the company’s level of control over Campion Group. However, the investigation uncovered that Steinhoff executives actively manipulated records to conceal fraudulent transactions.

By the time Deloitte confirmed accounting irregularities in 2017, it was too late—Steinhoff’s share price collapsed, losing 97% of its market value, and the company eventually delisted and liquidated on October 13, 2023.

The Fallout: Suicide, Fraud Charges, and Corporate Collapse

The scandal led to the suicide of former CEO Markus Jooste, while multiple Steinhoff executives were charged and convicted of fraud. Investors lost billions, and the company’s liquidation marked the end of what was once a global retail giant.

The Steinhoff-Campion connection highlights how corporate fraud can be hidden in complex financial structures, making regulatory oversight and forensic investigations crucial in preventing future scandals.

With South Africa’s biggest corporate fraud now fully exposed, the question remains: Who else should be held accountable?

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