The Financial Sector Conduct Authority has imposed an administrative penalty of R358.75 million on Stephanus Johannes (Stéhan) Grobler (pictured) for contraventions of the Financial Markets Act (FMA) arising from Steinhoff International Holdings NV’s financial statements for the 2014, 2015, and 2016 financial years and the 2017 half-year.
In a statement released today (2 March), the regulator said its investigation found that Grobler had contravened sections 81(1)(a) and 81(1)(b) of the FMA. These provisions prohibit the direct or indirect making or publication of statements that are false, misleading, or deceptive.
According to the FSCA, the financial statements issued by Steinhoff during the relevant period were “false, misleading, or deceptive in respect of material facts that were either misstated or omitted”. The Authority said its assessment was made “with reference to the information available at the time and the circumstances under which the statements were presented to the market”.
During the period under investigation, Grobler held multiple senior positions within the Steinhoff group. He served as company secretary, head of treasury, and in-house legal counsel, and was also a director of several Steinhoff subsidiary companies.
Public records indicate that Grobler joined Steinhoff in December 1999 as company secretary, a role he held until 2011. Over time, his responsibilities expanded to include oversight of the group’s legal function and treasury operations. At one stage, he also acted as managing director of Steinhoff Europe AG.
Companies House records in the United Kingdom reflect that Grobler held directorships in several UK-registered Steinhoff-related entities between 2001 and 2017.
Steinhoff, founded in 1964 as a furniture sourcing operation in Germany, had by the mid-2010s grown into a multinational retail group with operations across Europe, Africa, and Australasia.
The R358.75m penalty places Grobler among the most heavily fined individuals in the regulatory response to the Steinhoff accounting scandal.
In March 2024, the FSCA imposed an administrative penalty of R475m on former Steinhoff chief executive Markus Jooste for contraventions of the same provisions of the FMA in relation to Steinhoff’s financial statements covering overlapping financial periods.
Parallel criminal proceedings
The FSCA’s regulatory action runs parallel to ongoing criminal proceedings.
In March 2024, Grobler appeared in the Pretoria Specialised Commercial Crimes Court after being charged in connection with the Steinhoff accounting irregularities. According to court reporting and statements issued by the National Prosecuting Authority, the charges include racketeering, multiple counts of fraud involving amounts running into billions of rand, manipulation of financial statements, and failure to report fraudulent activities.
At his initial appearance, Grobler was granted bail of R150 000.
Subsequent court proceedings have involved case management and pre-trial processes. Public reporting indicates that the matter has progressed towards High Court adjudication, with further procedural steps taking place during 2025.
As with all accused persons, Grobler is presumed innocent until proved guilty in a court of law.
Details of the allegations against Grobler are set out in an indictment finalised in 2024.
According to reporting on the indictment, prosecutors allege that between 2014 and 2016 certain transactions were structured in a manner that misrepresented Steinhoff’s financial position.
The transactions referenced include:
- TG Group-related transactions: Prosecutors allege that entities associated with the TG Group were used to create the appearance of profits through agreements that lacked underlying commercial substance. Court reporting states that Grobler is alleged to have drafted or facilitated contractual documentation in connection with these transactions under the direction of senior executives.
- BNP Paribas-related commission arrangements: The indictment reportedly alleges that certain funding transactions generated commission payments that prosecutors contend did not reflect genuine economic activity.
In a related matter, former Steinhoff chief financial officer Ben la Grange pleaded guilty in October 2024 to fraud linked to a R376m fictitious invoice recorded in the 2016 financial statements. Court reporting of the plea agreement states that La Grange’s plea referred to interactions involving Grobler in relation to documentation connected to that transaction. La Grange was subsequently sentenced by the court.
Asset attachment and civil proceedings
Separate from the criminal prosecution and the FSCA’s administrative enforcement, additional legal proceedings have taken place.
In October 2024, the South African Reserve Bank, acting under the Exchange Control Regulations, published notices attaching and declaring forfeited assets linked to Grobler. The amounts involved exceeded R67m and included loan accounts, shares, and funds associated with a trust bearing his name.
Read: SARB seizes over R67 million from former Steinhoff executive
Civil proceedings have also been instituted by Steinhoff entities seeking to recover remuneration, bonuses, and share incentives paid to former executives during the period when the company’s financial statements were later restated.
Court records reflect that legal action was initiated in 2023 seeking recovery of payments made to Grobler. He is facing a demand of R238m from Steinhoff Africa Holdings, €1.3m from Steinhoff Europe Group Services, and €315,000 from Steinhoff Europe.
Steinhoff International Holdings N.V. was liquidated in October 2023 as part of a broader restructuring of the group’s remaining assets.
The Steinhoff accounting scandal became public in December 2017 when the company announced it had identified accounting irregularities requiring investigation. Jooste resigned shortly thereafter.
A subsequent forensic investigation conducted by PwC reported in 2019 that it had identified approximately €6.5bn in irregular transactions across multiple years. Following the disclosure, Steinhoff’s share price declined by more than 95%, with media estimates at the time placing shareholder losses in the hundreds of billions of rand.
Regulatory, criminal, and civil proceedings arising from those events have continued for several years across multiple jurisdictions.
This is absolutely amazing, however he will not be able to pay such a fine. Wonderful that he is held accountable by Regulators. Pity he was never held accountable by the Board Members. When will they be held accountable since we have not seen that Non-Executive Directors “face any music” and they are paid to fulfill a very specific duty. Have they note failed the nation?