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SAFTU PERSPETIVES on STEINHOFF DEBACLE 15 August 2018

SAFTU PERSPETIVES on STEINHOFF DEBACLE 15 August 2018. THE CRISIS Of STEINHOFF DEBACLE. SAFTU finds the crash of Steinhoff International to be quiet alarming An estimated R194 billion to have been lost to the country,

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SAFTU PERSPETIVES on STEINHOFF DEBACLE 15 August 2018

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  1. SAFTU PERSPETIVES on STEINHOFF DEBACLE 15 August 2018

  2. THE CRISIS Of STEINHOFF DEBACLE • SAFTU finds the crash of Steinhoff International to be quiet alarming • An estimated R194 billion to have been lost to the country, • This is more than the estimated losses from all the Gupta-related scandals – supposed to be worst • Direct threats to the livelihoods of millions of workers • PIC used to have stake worth R20bn now is worth R3,6bn • Other Workers’ Fund contain big holdings of Steinhoff shares whose value plummeted by R134bn in few days

  3. THE CRISIS OF STEINHOFF DEBACLE • So workers with defined benefits have guaranteed pensions and those with define contributions risked losing huge • Worse there was a threat of 130 000 jobs in 32 countries • If allegations in the media are true; Steinghoff • Used earnings manipulations; uncontrolled acquisitions; tax frauds; and even old abhorent trick defined as “a fraudulent investment operations” A Ponzi Scheme

  4. OTHER RELATED CASES OF PRIVATE CORRUPTION • Now more evidence supports SAFTU’s view that: • corruption and fraud epidemic involves far more and bigger players throughout the country • both in private where it is an inherent feature of a monopolized capitalist system and public sector • Look at the Guptas scandals – quiet outrageous • Mainly featured buying leading politicians and public servants in state owned enterprise • The idea was to chapel funds into inot family coffers • Guptas cohorts; KPMG, McKensey; SAP and Bell Potinger have been shown to have assisted in corrupt deals

  5. OTHER RELATED CASES CONT. • Observing the Naspers case • Allegedly it involves trying to buy support for government changes on digital migration and encryption • VBS as the latest company • apparently a runaway success at first suddenly placed under curatorship experiencing liquidity crisis • Suspected of fraudulent transaction benefiting certain individuals and companies connected to the bank • Arranging loans to its own directors and shareholders – serious malpractices • Now, to us this and other similar situations emphasize SAFTU’s analysis that this is the worst but not abnormal symptoms of a structural corrupt capitalism

  6. BROAD OBSERVATION • In All these cases • It remains suspicious why independent INTERNAL AND EXTERNAL auditors failed to detect and warn about these questionable activities • Had it not been for the good investigative journalism exposing this issues, r • Regulatory bodies would have continue to blame its inertia on “complexities” of identifying fraud and other crimes or corruptions • In spite overwhelmingand compelling evidence there have not been any arrests and prosecution of those alleged to have committed • In fact, with regard to Steinhoff a spun excuse was “accounting irregularities” • The CEOs when facing disciplinary actions they either resigning or get separation packages

  7. BROAD OBSERVATION • However, what we know is that these are the worst form of criminal activities against poor and workers • And therefore not just individual CEOs and companies must be put in the dog BUT the whole monopoly capitalist system • These and other similar situations emphasize SAFTU’s analysis that this is the worst but not abnormal symptons of a structural corrupt capitalism

  8. GOING FORWARD • No stone should b left unturned to investigate; prosecute and punish those who have broken the law • This should include regulatory bodies, audit companies; investment portfolio managers; stock exchanges who must be prosecuted and jailed

  9. SUMMARY & CONCLUSIO • SA working class will: • pay a price of living in a corrupt kleptocracy • Have to live under a relegated economy to junk status • Consequently we will have: • a sluggish economic growth, • grinding poverty for millions, • unemployment six times the world average and • live as the most unequal society

  10. Summary & Conclusion • To counter this – economic crime in SA, we will have to return tot the values of the Freedom Charter • We reject the notion that this is a free market system ad affirm that it is a monopoly system in which super rich elite swindle and cheat • This in order to dominate markets, maximise profits and crush rivla capitalist all at the expensse of their workers, consumers and the people of SA, particulalry the poor

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