On Tuesday, Steinhoff stunned investors and corporate governance analysts when it confirmed media reports that the company had prepaid Wiese €325m during October and November 2017 for Shoprite shares, just weeks before Steinhoff collapsed. Unlike South African company law, there is no provision in the Dutch law requiring oversight of the provision of loans or financial assistance to directors. Section 45 of the South African Companies Act requires a board resolution and also requires that shareholders agree to any payments made to directors.
KPMG Under Fire Over VBS Scandal
KPMG has suspended one of its top executives who was the lead partner on VBS Mutual Bank which has been accused of severe mismanagement and fraud. The South African Reserve Bank has red flagged the bank, saying that nearly R1 billion cannot be accounted for. KPMG has now taken action against Sipho Malaba who signed off the independent auditors’ report on the bank’s accounts until July 2017
McKinsey & Trillian To Repay Eskom
Global consulting firm McKinsey and Gupta-associated Trillian Capital Partners have both agreed to repay the R1.6bn they received from Eskom and will not oppose Eskom’s court application to get them to pay back the money.
JSE Pulls Sagarmatha Listing
Sagarmatha’s failure to submit its annual financial statements to the Companies and Intellectual Property Commission (CIPC) was behind the JSE’s decision not to allow it to go ahead with a proposed listing on Friday. On Wednesday, the company was due to announce the results of a private placement ahead of the Friday listing. However, instead of this announcement, shortly after 6pm the company released a Sens statement, saying that the JSE had decided the listing could not go ahead.
Facebook To Incentivise Whistleblowers
Facebook yesterday launched a data abuse bounty program to incentivise anyone who can prove the misuse of Facebook data. In an effort to clean up its tattered reputation, the online social media company which has been criticised for its data breach and exposed the information of millions of Facebook users has launched a bounty program.
Burgh Group To Run Gupta Mines
South Africa’s Burgh Group Holdings won a temporary contract to keep mines linked to the Gupta family afloat, according to a business-rescue manager for the assets. Other parties offered financing, but Burgh “came without conditions,” Louis Klopper, a bankruptcy-proceedings manager at Coronado Consulting Group, said Wednesday. Burgh is “an ideal partner” to provide technical expertise and banking facilities, he said, without disclosing financial terms.
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