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Time for the Reserve Bank to get its hooks into Steinhoff



Time for the Reserve Bank to get its hooks into Steinhoff

How about the bank trying to haul back some of the billions that were salted away offshore?

BusinessLIVE reporter

With so many investors queuing up to launch legal action against Steinhoff for persuading them to make really bad decisions on the basis of “misleading information”, can it be much longer before the SA Reserve Bank decides it wants to join the action?Christo Wiese, GT Ferreira and Coronation Fund Managers are all threatening legal action against Steinhoff International. Wiese alleges he was persuaded to exchange his valuable Pepkor shares for Steinhoff shares on the basis of the information provided by Steinhoff. Ferreira exchanged PSG shares for Steinhoff shares on the basis of the same misleading information. Coronation was similarly misinformed and exchanged hundreds of millions of rands in cash for Steinhoff shares.
Essentially an awful lot of hugely valuable decisions were taken on the basis of misinformation. Presumably back in 2015, or whenever Steinhoff was preparing to transfer its primary listing to Frankfurt and its place of registration to Holland, the Reserve Bank was provided with a similar type of information, ie misleading. And on the basis of this information it granted the company the authority to externalise hundreds of billions of rands of assets from South Africa to Europe.
If Wiese and Ferreira, no slouches when it comes to high finance, reckon they have a chance of undoing some complex financial transactions, then why not the Reserve Bank? Might it be tempted to reverse the externalisation process and claim the assets back as South African?
What a precedent that would be.

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