From golden visas to airplane deals – what we've learned from Steinhoff's 'real' results | BISouthAfrica
Steinhoff has written of billions, and its total assets for that financial year are now estimated at €17.5 billion. In 2016, Steinhoff claimed its assets came to €32.2 billion.Business Insider SAOn 5 December 2017, Markus Jooste resigned as Steinhoff CEO after auditors Deloitte refused to sign off on the company’s results for the financial year to end-September of that year.
Its total assets fell to €17.5 billion in 2017 from a restated €21 billion in 2016. In 2016 Steinhoff claimed its assets came to €32.181 billion. Steinhoff 2017: total of R246bn of writeoffs and now R140bn of debt. Sustainable Ebitda probably around R6-8bn. I don’t think the share has any value whatsoever. Horrific outcome. 2018 numbers coming soon ... and will be worse.Enron, the worlds biggest fraud, was R650bn. At R250bn of fraud related writeoffs, Steinhoff is right up there on the biggest ever ranking table.
While Wiese hold 90% of Upington, other Steinhoff directors including Jooste hold 10%. Upington also purchased 315 million Steinhoff shares as part of a capital raising, for which it received a “underwriting commission” of €39.7 million.Steinhoff paid €19,631 an hour to rent a Boeing 737-72U from a company called Toerama, an entity controlled by Steinhoff chair Christo Wiese.
In 2017, Grobler’s firm also received provided legal services to Steinhoff to the amount of €2 million.In 2016, a group of unnamed Steinhoff execs bought a property in Portugal from the group’s subsidiary Conforama. The property investment allowed them and their families to get “golden visas”, which fast-track residency permits in Portugal. The execs paid €7 million for the property, with the agreement that they can sell it back after five years at the original purchase price.
Steinhoff would list various “rebates” and other “bonuses” secured by the TG Group in its accounts. These entries in its financial statements helped to bolster Steinhoff’s profitability.“TG did not in fact negotiate or collect contributions from third parties on behalf of the group. Payments received in respect of the amounts owing by TG were received from entities within the Group i.e. there were no external cash flows into the Group.
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