The South African Institute of Chartered Accountants (Saica) is conducting an investigation into the Deloitte auditors who worked on the accounts of Steinhoff, said Saica chief executive Freeman Nomvalo.
He said in response to questions from Business Report that although Saica did not have jurisdiction over firms, it could investigate and discipline individual Saica members.
Steinhoff is dealing with a number of legal claims in South Africa, Germany and the Netherlands after its share price tanked in December 2017 and substantial accounting irregularities were subsequently uncovered.
As Steinhoff’s former auditor that signed off its accounts at the time, Deloitte agreed earlier in February to pay up to R1.3 billion in compensation to Steinhoff claimants. The company said the payment did not represent an admission of liability for losses incurred by Steinhoff and its stakeholders as a result of the accounting irregularities.
In the 2017 audit, Deloitte had uncovered accounting irregularities and had refused to sign off the accounts. Deloitte pushed Steinhoff to conduct the independent investigation that uncovered fraud by Steinhoff’s former management. Deloitte’s “global settlement” was aimed at addressing the litigation arising from the management fraud.
