Reserve Bank deputy governor Fundi Tshazibana published three notices and orders of forfeiture in the Government Gazette on Friday, 19 July, informing the Steinhoff group of companies that “I hereby declare and order forfeit to the state” about R6-billion in seven local accounts.
The Steinhoff funds must be paid over to the National Revenue Fund (NRF). The NRF is in effect the government purse, which collects all revenue (by the tax man), fines and donations.
The notices and orders were served against SAHPL (Pty) Limited, known as Steinhoff Africa Holdings, SIHPL (Pty) Limited, known as Steinhoff International Holdings, and Ibex Investment Holdings Limited, which previously was Steinhoff Investment Holdings.
Ibex is now the new Steinhoff.
This is a major win for the central bank on at least two fronts. Not only are they broad-chested about the sum forfeited, but it seems the forfeiture notices may have scuppered an existing court case against the Reserve Bank.
Late last year, Ibex/Steinhof initiated proceedings in the high court in Pretoria contesting the reserve bank’s freezing order of May 2023 which froze R5.5-billion in five local accounts.
Scorpio wrote about how Steinhoff questionably did not declare this action in its annual financial statements
Read more on Daily Maverick: SARB freezes billions in Steinhoff accounts — but you wouldn’t notice in company financial statements
This case is now generally viewed as mostly moot. Ibex/Steinhoff is expected to put up a huge fight to set aside Tshazibana’s decision but will probably be forced to file a new application.
The Reserve Bank’s freezing order of May 2023 and this week’s forfeiture notices and orders come after a years-long investigation, codenamed Project Castle, confirmed the central bank’s suspicion that Steinhoff and its management led by Jooste probably breached a long list of exchange control regulations.
Scorpio understands that about R600-billion was possibly moved offshore – possibly unlawfully in many instances.
This article is more than a year old
Scorpio
Reserve Bank orders Steinhoff to forfeit more than R6-billion to the State
This week, the Reserve Bank notified the Steinhoff group of companies that its funds in seven local accounts have been forfeited to the state. The forfeiture amounts to about R6-billion, plus interest — a record forfeiture for the central bank.
The Ibex/Steinhoff accounts held the following funds and is now forfeited to the state:
* SAHPL:
Euro account at Standard Bank: Euro40,34-million;
FNB account: R311,3-million
FNB account: R223,2-million
* SIHPL:
FNB account: R190,9-million
FNB account: R2,23-billion
FNB account: R2,25-billion
* Ibex Investment:
FNB account: R166,6-million
DM