ANC welcomes Steinhoff conviction but demands tougher action against corporate corruption
4 October 2024
The African National Congress (ANC) welcomes the conviction of Former CFO of Steinhoff, Andries "Ben" la Grange who has been sentenced to a 10 year imprisonment, with 5 years suspended by the Pretoria Specialised Crimes Court. He pleaded guilty and agreed to assist the state in its further prosecutions of other involved parties in South Africa's largest corruption scandal to date. This conviction is an improvement on the disappointing 5 year suspended sentence that was handed down last week to Dr. Gerhardus Diedricks Burger, another Steinhoff criminal who was charged with insider trading.
His sentencing gives hope for stronger convictions against other involved parties still under prosecution in the Steinhoff corruption case, The punishment does not adequately mirror the devastating impact of Steinhoffs fraud on workers and pensioners. However, we are not to pretend that there is no progress in combatting corporate crime as the five-year imprisonment sentence is in line with our call for a deterrent message to be sent against offenders.
Corporate corruption, like public sector corruption, must be met with severe consequences. The ANC reiterates its stance that corporate greed, enabled by weak regulation, has destroyed livelihoods, and these convictions should be the start of tougher actions against white-collar crime in South Africa.
It is prudent to highlight that these convictions are critical as South Africa navigates the multi-layered environment of corporate fraud, particularly in scandals like Steinhoff. Adherence to Financial Action Task Force (FATF) standards is crucial in strengthening South Africa's financial integrity. The Financial Sector Conduct Authority (FSCA) has taken punitive measures against non-compliant entities within the financial sector as part of the broader effort to meet FATF requirements and ensure our removal from the grey list.
Compliance with FATF guidelines must inform the actions of all stakeholders, reinforcing transparency and regulatory oversight. As a nation, fulfilling these requirements is a necessary step in restoring public trust and building robust, pre-emptive measures to prevent future exploitation of our financial system.
The ANC acknowledges the good work of the NPA and judiciary, urging them to intensify their efforts in prosecuting all involved in the Steinhoff scandal to ensure justice for the victims, especially workers and their pensions. Corporate criminals must never expect to evade accountability through lenient sentences that weaken the fight against corruption.
Issued by Mahlengi Bhengu-Motsiri, National Spokesperson, ANC, 4 October 2024
