EFF STATEMENT ON FINANCIAL SECTOR CONDUCT AUTHORITY FINE ON MARKUS JOOSTE
Friday, 30 October 2020
The EFF notes the decision of the Financial Sector Conduct Authority (FSCA) to impose a fine of a minimum of R122 million and a maximum of R161 million on Markus Jooste for breach of the Financial Markets Act 19 of 2012. Markus Jooste committed serious crimes of fraud, corruption, money laundering, theft and racketeering. In addition to all these crimes, he also participated in prohibited practices of inside trading to manipulate securities trading.
The EFF views the fine imposed by the FSCA as nothing but a slap on the wrist. The investigation into the collapse of Steinhoff International has revealed that 97% of the company's value was wiped out, a total monetary value of just over R180 billion and left the company with a debt of more than R160 billion due to Jooste's criminal conduct. This includes workers' pension money to a tune of R20 billion invested by the Public Investment Corporation that was lost due to Jooste's shenanigans. Jooste has caused massive irreparable damage to shareholders value and the South African economy, and for this, he deserves far much harsher fines.
The EFF is concerned that all the talks about dealing with corruption appear to be directed to black people who don't even make up a recognisable figure in terms of meaningful participation in the South African economy. People like Jooste commit serious crimes only to disappear into a life of luxury, tranquillity and bliss without suffering any loss. If anything, the likelihood is that Jooste is continuing to engage in business despite all the crimes that he has committed, and he is not arrested.
The EFF calls on the Hawks and the NPA to take steps and arrest Markus Jooste immediately. There is sufficient prima facie evidence. The fine by the FSCA is the second after the Johannesburg Stock Exchange fined Jooste R13.5 million for publishing lies that played a major role in the corruption, fraud, theft, money laundering and racketeering at Steinhoff International. The failure to arrest Jooste immediately will only serve to confirm our long-held belief that Shamila Batohi is brought to the NPA to prosecute black people who are at the bottom of the food chain of the corruption ecosystem. She has no intention to deal with corruption in the private sector that has reached pandemic levels.
We may be forced to conduct citizens' arrest if the Hawks and NPA don't arrest him with immediate effect.
Statement issued by the EFF, 30 October 2020
