South Africa’s case against executives in the biggest corporate fraud in the country’s history will be moved to a higher court for complex criminal trials, with their next hearing also pushed back to September.
Stéhan Grobler, the head of treasury at Steinhoff International Holdings NV when the furniture giant unraveled almost eight years ago, received extended bail along with two other former executives at Steinhoff subsidiaries and affiliates at a hearing in the Specialized Commercial Crimes Court in Pretoria on Friday.
Their case will be moved to the High Court, with their next hearing scheduled for Sept. 3 when a trial date is likely to be set.
The extra time will allow the prosecution to finalize investigations and secure a racketeering certificate, according to court proceedings, while prosecutors were also waiting for an affidavit from witnesses in Germany that arrived on Friday. A finalized charge sheet will be ready by June 17.
Grobler says he’s innocent of charges already set out by prosecutors including racketeering, manipulation of financial statements and three counts of fraud worth 21 billion rand ($1.2 billion).
The collapse of Steinhoff, once feted for a gutsy entrepreneurial spirit that built a retail empire spanning Australia, Europe and the U.S., rocked South Africa as the company’s share price collapsed in December 2017, hitting everyone from staff and creditors to the government workers’ pension fund. About 230 billion rand was lost on the Johannesburg stock exchange in a matter of days.
Pressure has been building on prosecutors, especially after a 7,000-page report on Steinhoff’s dealings — compiled by auditor PwC in the wake of its collapse — was finally released six months ago. Former Chief Financial Officer Ben la Grange is the most senior Steinhoff executive to be jailed so far, but his plea deal last year — including a requirement to testify in the Grobler case — meant the scandal has yet to be fully aired in court.
Former Chief Executive Officer Markus Jooste died by suicide in March 2024.
Steinhoff, which owned Conforama in France and Mattress Firm in the U.S., collapsed after auditors refused to sign off on its financial statements. That led to the start of police and regulatory investigations in both Europe and South Africa. The probe by auditor PwC uncovered €6.5 billion ($7.4 billion) of irregular transactions with eight firms over eight years.
