The amaBhungane Centre for Investigative Journalism and the Financial Mail have gone to court to force Steinhoff to disclose the uncomfortable details of South Africa\u2019s largest ever corporate fraud.<\/p>\n
AmaBhungane and FM last week launched a joint application in the Western Cape High Court<\/a> to compel the global furniture retailer to release the full forensic report on accounting failures and fraud that it commissioned from audit firm PWC.<\/p>\n The court application<\/a> follows two separate requests for the 7 000-page report that FM and amaBhungane filed earlier this year under the Promotion of Access to Information Act (PAIA).<\/p>\n Steinhoff refused both requests on the grounds the report contained \u201clegally privileged\u201d information \u2013 it had been commissioned for purposes of obtaining legal advice and for use in litigation.<\/p>\n FM and amaBhungane are challenging these grounds and asking the court to order full disclosure.<\/p>\n The PwC investigation, which has reportedly cost Steinhoff shareholders over half a billion rand and is still ongoing, resulted in the company admitting that its assets and income were falsely inflated by as much as R105-billion.<\/p>\n \u201cWe decided it was time to challenge the reasons for keeping the report secret, despite Steinhoff previously undertaking to make it public. This is by far and away the largest corporate fraud ever perpetrated by a South African company. The public, who have collectively lost hundreds of billions of rands as a result of this crime, deserve to know how this occurred and who should be held responsible,\u201d said Rob Rose, FM\u2019s editor.<\/p>\n AmaBhungane managing partner Sam Sole said: \u201cThe complexity of this crime means that it is likely to be years before any of the perpetrators face criminal consequences. It\u2019s an outrage that the accused directors are still swanning around, using what appear to be the proceeds of crime.\u201d<\/p>\n Steinhoff has confirmed it will be opposing the application, re-asserting its stance that the report is confidential and subject to legal professional privilege.<\/p>\n \u201cSteinhoff will therefore oppose any application to make this report public,\u201d the company stated.<\/p>\n