NPA secures the first conviction and sentence in Steinhoff case

27 September 2024

The Specialised Commercial Crimes Court, Pretoria has sentenced a former Steinhoff physician Dr Gerhardus Diedricks Burger (79), to 5 years imprisonment, which is wholly suspended for 5 years on condition that he is not convicted of contravention of section 78(2) of the Financial Markets Act during the period of suspension. He also has to testify in the criminal proceedings against his accomplices.

The court also issued a confiscation order for €90,000 which is about R1.8million seized by Swiss authorities after the collapse of Steinhoff. This is after Dr Burger pleaded guilty to 3 counts of insider trading and was convicted as such when he appeared in court.

Shortly before the collapse of Steinhoff the CEO, the late Markus Jooste sent Dr Burger who accompanied Steinhoff directors on overseas trips to look after their health a text advising him to sell his Steinhoff shares. Dr Burger thereafter sold all the Steinhoff shares held under the Dieter Burger and Lane Burger Trusts where his children are beneficiaries. He also sold 39,722 Steinhoff shares held at Stefana Overseas Ltd, where Dr Burger was also the beneficiary, on the Swiss stock exchange.

Shortly after the sale of the shares, Steinhoff shares plummeted and became almost worthless. At that point the Financial Sector Conduct Authority (FSCA) instituted investigations where Dr Burger was convicted and found guilty of insider trading for the same transactions and paid a penalty of R3 million to FSCA. FSCA then referred the matter to the NPA for criminal prosecution.

The Steinhoff case, one of the biggest cases of corporate fraud in the history of South Africa, has been one of the most complex commercial crime cases that the DPCI and the NPA have had to deal with. At a point when a significant breakthrough was made to enrol the case earlier this year, the main accused, ex-CEO of Steinhoff Markus Jooste took his life on the eve of his arrest, thus escaping the hands of justice when it mattered the most.

The National Prosecuting Authority (NPA) welcomes the conviction and sentence. It is important for the public to understand that criminal prosecutions require patience, preparation, and a certain measure of certainty.

Issued by Lumka Mahanjana, NPA Regional Spokesperson, Gauteng Division: Pretoria, 27 September 2024