The South African Reserve Bank (SARB) said yesterday it would not comment on whether or not it froze the funds in five accounts linked to the ailing Steinhoff's local operations.
This comes after an online publication the Daily Maverick, published a story claiming that the central bank froze Steinhoff's funds which are valued at about R5.5 billion.
Steinhoff owns 44.5% of Pepkor and 75% of European discount retailer Pepco and stakes in US Mattress Firm and Greenlit brands, an Australian furniture seller.
In response to the Business Report queries, SARB said: "As the SARB, we are unable to comment on ongoing investigations and matters relating thereto".
According to the report, Steinhoff did not clearly declare in its latest annual financial statements that the central bank has frozen its accounts.
Instead, the group included in its latest results that accounts holding €285.6-million (R5.52bn) of the group’s funds were subject to SARB approval prior to making any withdrawals.
“Any conditions required by SARB relating to their approval for withdrawals and the time frame relating thereto is currently unknown to the group.”
Steinhoff's woes started in 2017 the company made headlines for accounting fraud in what is said to be South Africa’s biggest corporate fraud, with its executives facing criminal charges, including its former CEO Markus Jooste.
In October, The SA Reserve Bank published the Western Cape High Court order on its website, which showed that Jooste and other respondents were suspected of contravening foreign exchange regulations, and that SARB was in the process of attaching billions of rands of Jooste's assets.
The assets to be attached included those of the Silver Oak Trust, art worth about R98.78m, financial assets worth R1.21bn, loans receivable of R131.12m, Jooste’s house in Voelklip, Hermanus, at least six luxury vehicles, jewellery and other art worth some R795 400, books, documents, electronic devices, and passwords, and the Lanzerac wine estate in Stellenbosch.
While the National Prosecuting Authority has not announced any moves on Jooste, a German court has since issued a warrant of arrest for him. The probe into Steinhoff’s financial misdealing was two-fold, with the other part being conducted by German authorities.
Apart from Jooste, other respondents in the attachment order were listed as his son Michael, Gary Harlow, and Rian du Plessis who are trustees of the Jooste family trust, Silveroak, his wife Ingrid, Lanzerac Estate Investments, the Registrar of Deeds in Cape Town and Petrus Albertus Venter.
Yesterday, the Western Cape High Court dismissed an application by Berdine Odendaal, who is reportedly Jooste's girlfriend, to have SARB release R150 000 a month from blocked funds it had previously frozen, and to pay her legal expenses as well.
The court found that she did not make any case that her funds should be released.
Meanwhile, the group has been struggling with debt and faces a credit default and possible liquidation after its shareholders recently voted against a crucial restructuring plan. The retailer owes its creditors €10bn (about R200bn), and cannot pay it. The group might move to delist.
BUSINESS REPORT