South African Billionaire Markus Jooste Commits suicide After Being Fined $25.2 Million

Markus Jooste, former chief executive officer of scandal-ridden retailer Steinhoff International Holdings NV, has reportedly committed suicide after shooting himself. He was aged 63.

His death comes just one day after South Africa’s financial regulator levied a 475 million rand ($25 million) fine against him for making and publishing false, misleading or deceptive statements about the company. That was in addition to a 20 million rand previously levied by the regulator for insider trading.

South African broadcaster Newzroom Afrika has now cited sources who confirmed Jooste shot himself during an arrest.

“It is alleged that the victim sustained a gunshot wound at around 1520 (local time) at Kwaaiwater and succumbed to death on his way to hospital,” Western Cape police spokesperson Colonel Andre Traut said in a statement, referring to a suburb of the coastal town of Hermanus near Cape Town.

Traut said police were investigating the circumstances, adding that no foul play was suspected.

Reports said he had been fined 475 million rand ($25.15 million) by South Africa’s Financial Sector Conduct Authority for publishing false and misleading financial statements, the regulator said on Wednesday.
Steinhoff has suffered hefty losses and a stream of lawsuits since revealing holes in its accounts in December 2017, the first sign of an accounting fraud that led to the near-collapse of the retail group, which is majority owner of South African and discount retailer Pepkor (PPHJ.J), opens new tab.

Last year Steinhoff, which was listed on the Frankfurt Stock Exchange and the Johannesburg bourse, implemented a debt restructuring plan to avoid bankruptcy. The plan gave shareholders rights to 20% of the new entity after the parent company was delisted and a new unlisted holding structure was created.

Jooste was fined after an investigation found that he and European finance boss Dirk Schreiber made or published statements about Steinhoff International Holdings that “they knew or ought reasonably to have known were false, misleading, or deceptive,” the FSCA said.

That included misleading shareholders by the omission of material facts, it added.
Both Jooste and Schreiber were found to have contravened some sections of the Financial Markets Act, with regards to Steinhoff’s annual financial statements and annual reports for 2014 to 2016 years and the 2017 half year.

Jooste was ordered to pay a fine to the regulator on or before April 19, including 10 million rand to reimburse the FSCA for reasonable costs incurred during the investigation, the regulator said.

With regards to Schreiber, the FSCA did not impose an administrative penalty due to his cooperation with the investigation and other factors, the FSCA said.