Executive avoids South African penalty

Former Steinhoff Europe finance chief Dirk Schreiber escaped an administrative fine in South Africa after signing a leniency agreement with the Financial Sector Conduct Authority.

The regulator found that Schreiber had helped publish false, misleading or deceptive information in Steinhoff’s financial reports.

However, the FSCA agreed not to impose a financial penalty because he provided extensive cooperation during its investigation.

Under the agreement, Schreiber was required to give the regulator full and truthful information, including evidence that could incriminate him.

He also agreed to assist without financial compensation and keep information from the investigation confidential.

False reports inflated Steinhoff’s position

The FSCA began investigating Steinhoff after its share price collapsed in December 2017.

The regulator found that executives used transactions involving supposedly independent third parties that were closely connected to company insiders.

Steinhoff’s financial statements between 2014 and 2016, as well as its 2017 half-year results, contained significant misstatements and omitted important information.

The inaccurate reports inflated the retailer’s reported profits and asset values while it was listed in Johannesburg and Frankfurt.

The FSCA initially imposed a R1.5 billion penalty on Steinhoff in 2019. It reduced this to R53 million to avoid further harming shareholders who had already suffered losses.

Cooperation helped FSCA investigation

Schreiber’s information assisted the regulator in reaching findings against other people linked to the scandal.

Former Steinhoff chief executive Markus Jooste was fined R20 million for insider trading and R475 million for publishing false financial statements.

Former company secretary Stehan Grobler was fined R358.75 million in February 2026. He has applied for the decision to be reconsidered.

The FSCA said its broader investigation into false statements published by Steinhoff remained ongoing.

German court sends Schreiber to prison

Although Schreiber avoided a South African penalty, he received a three-and-a-half-year prison sentence from the Oldenburg Court in Germany in August 2023.

He became the first senior Steinhoff manager imprisoned over the accounting scandal.

His effective sentence was reduced by one year because the investigation and prosecution had taken too long, leaving him to serve two and a half years.

The different outcomes show how Schreiber’s cooperation protected him from an FSCA fine but did not prevent criminal punishment in Germany.