Markus Jooste Biography, Wife, Age, Career, Education, scandal, Investigations, litigation, House, Net Worth, Children, Assets, House, Cars, Social Media, Personal Life, Latest News, Steinhoff, Qualifications

Markus Jooste Biography

Markus Johannes Jooste (22 January 1961–21 March 2024) was a South African businessman and CEO of Steinhoff International. He was an ardent horse breeder and was estimated to be one of Africa’s wealthiest individuals in 2016, at $400 million.

In 2014, they partnered with Christo Wiese to launch an ambitious international expansion strategy. The share price of the company reached a peak in March 2016, supporting its approach of paying dividends and acquisitions through stock sales.

Following a dispute with business partner Andreas Seifert, European regulators, journalists, and law enforcement were alerted to the conglomerate’s inflated profit and asset values, as well as off-balance-sheet deals with third parties, prompting Deloitte LLP to demand an internal investigation before signing off on the 2017 financials.

Jooste rejected this demand and was unable to persuade the Steinhoff board to select new auditors. Jooste resigned on December 5, 2017, followed by Wiese nine days later, after a big investor, PIC, requested independent oversight.

Jooste’s abrupt retirement was followed by a lengthy and contentious debate regarding Steinhoff’s accounting procedures in its Central European sector, which dated back to 2014.

The subsequent uncertainty saw about €10 billion (R160 billion) of Steinhoff’s worth wiped off the markets in a couple of days, with further losses as the crisis evolved. Insurmountable debts and demands would cause Steinhoff’s demise in 2023.

The subsequent 3,000 or 7,000-page PwC investigation directly linked Jooste and his CFO Ben la Grange to widespread fictitious transactions and accounting irregularities, resulting in the Stellenbosch-headquartered company claiming R870 million from Jooste and R272 million from Ben la Grange in a summons lodged at the high court in Cape Town, which aimed to recoup salaries and bonuses.

Some journalists, aided by the Panama Papers, claim that insider trading has occurred since Steinhoff’s IPO in 1998 and that the company’s top executives have acted on both sides of multiple transactions. Leveraged Steinhoff shares acted as currency to remunerate third parties, while shareholder value was reduced by acquisitions in which Jooste and his circle of allies reportedly acquired prior ownership.

South Africa’s Hawks investigative unit admitted to making no progress, and the NPA lacked the in-house skills to investigate crimes of this nature, criminal charges were not filed.

The devastating impact on pension funds prompted several South African MPs to express dismay at the absence of prosecution, and some requested that the responsible parties be arrested immediately.

Meanwhile, the JSE has found Jooste guilty of two contraventions of listing criteria and levied a maximum fine of R15 million on him while prohibiting him from working as a director of a listed company for a term of 20 years.

Markus Jooste Age

On January 22, 1961, Markus Jooste was born in Pretoria, South Africa. Jan. 20, 2022, marked his 61st birthday.

Markus Jooste’s Early Life

Markus Jooste was born on January 22, 1961. His father was a postal worker and a passionate horse racing fan, and he instilled in his son a love of the sport.

Jooste graduated from Afrikaanse Hoër Seunskool in 1978. Before the 2017 breakdown of his business empire, he donated R10 million to the school’s old boys’ trust. The donation has since been ring-fenced, pending any claims.

Markus Jooste Education

In 1978, Markus Jooste graduated from the Afrikaanse Hoor Seunskool (Affies). He graduated with a BAcc from Stellenbosch University in 1982.

He later earned an honors degree from the University of Cape Town while finishing his CA(SA) articles at a business that was then owned by Christo Wiese.

Markus Jooste Family

Markus Jooste is well-recognized for being a devoted family man. He is thought to like spending time with his wife and kids. Before it went on the market, they resided in the Stellenbosch house.

Markus Jooste House

The Markus Jooste residence is owned by Markus and is located in Stellenbosch, South Africa. He also has opulent residences in Cheltenham. His taste is exquisite, as seen by the residences he owns.

Markus Jooste Wife

Ingrid Jooste is the wife of Markus Jooste. They’ve been together for a long time and have three kids. According to rumors, Ingrid created the hues that Markus’ racehorses sport. Markus is reported to have a girlfriend whom he adores despite being happily married. After he gave her a Bentley Bentayga, the news became public. The woman, Berdine Odendaal, allegedly works as a pole dancer and is in her 30s.

According to News 24’s story, Odendaal’s assets were seized by South African Reserve Bank inspectors as a result of a recent investment crisis. According to reports, “Mayfair Speculators, a horse racing company owned by Jooste’s family trust, loaned Odendaal R60 million to fund his opulent lifestyle” – IOL. She sued the SARB after having her R150k monthly salary taken away.

Markus Jooste Children

A son and two daughters make up Markus Jooste’s proud family along with his wife Ingrid. It has been claimed that he is a wonderful parent to his kids.

Markus Jooste Career

After becoming a chartered accountant in his twenties, he was appointed financial director of a publicly traded corporation.

At 27, he became the financial director of GommaGomma, where he met German entrepreneur Claas Daun, who mentored him in business. Jooste, for his part, persuaded Daun in 1998 to merge his business with Bruno Steinhoff’s in Europe and list Steinhoff International on the JSE.

Jooste and Daun served as non-executive directors of Steinhoff International beginning in 1988, with Jooste becoming CEO in 2000. As CEO, he guided the company through multiple acquisitions, transforming it from a small furniture producer to a huge furniture multinational. Piet Ferreira, a former investment banker who joined Steinhoff in 2002, was essential in structuring the company’s public offers and complex acquisitions over his 15-year employment.

Notably, in 2011, they paid €1,207 million for Conforama, which increased revenues and growth. From 2014 to 2017, purchases were made in South Africa, the United Kingdom, and the United States, including Mattress Firm for $2.4 billion and Poundland for £597 million in depressed retail conditions.

Despite being partially backed with Steinhoff shares, independent analysts questioned the extremely high premium paid for Mattress Firm.

The financial press first attributed the growth of Jooste’s empire to either good luck or fortuitous timing, but the dissenting voices became mute as Steinhoff reported a 36% increase in the 2014/2015 reporting year.

In March 2015, Steinhoff paid R63 billion (then €4.8 billion) for Pepkor from Wiese and his Brait holding business, implying a very high p-e of 37. Following a failed merger with Shoprite in December 2016, Jooste and Wiese secured new funds in 2017 to spin off Pepkor’s South African division, a move met with skepticism because it was viewed as a vehicle to pay off Steinhoff’s South African debt.

The Pepkor acquisition also took place without a cautionary announcement, prompting concerns at the FSB about possible insider trading before the transaction.

The separation meant a 71% share in the new firm, Star, which handled more than 5,000 South African stores—more than any other retailer.

In October 2015, Jooste paid some Stellenbosch colleagues, friends, and allies for a luxury excursion to the semi-final of the Rugby World Cup at Twickenham Stadium, which is estimated to have cost Steinhoff shareholders over R84 million.

On December 4, 2015, Steinhoff said that Oldenburg authorities raided its European headquarters in Westerstede, Germany, on November 26 to evaluate its balance sheet treatment of transfers to subsidiaries or third parties.

Three days later, on December 7, Steinhoff International Holdings changed its primary listing from Johannesburg to Frankfurt, because, according to Jooste, the majority of the company’s stores, customers, and revenues were in Europe.

Though identifying it as “an important day in the history of Steinhoff”, Jooste elected not to leave Cape Town to attend the occasion, claiming “neck pain” that impeded traveling.

Steinhoff’s share price peaked in 2016 at R90 per share, making it the 15th largest firm listed on the Johannesburg bourse.

The conglomerate then owned more than 40 retail shops. employed over 130,000 people across five continents and was Europe’s second-largest home furnishings business, after only Ikea.

In 2017, while its shares were held by around 340 South African investment funds, owing to its low volatility, its financial position deteriorated as its operational profit margin decreased and net debt grew.

Its March 2017 reports indicated €3.1 billion in cash reserves and €18 billion ($21 billion) of exposure to creditors.

Steinhoff reduced its effective tax rate to between 8% and 12% for years, despite the corporation tax rate of 28% in South Africa, which was pointed out as a warning signal in the aftermath of the Steinhoff catastrophe.

Manager Magazin reported in August 2017 that Jooste was one of the managers under investigation in Germany.

Prosecutors suspected that inflated sales in the hundred million Euro range had been declared on subsidiary balance sheets.

In November 2017, Handelsblatt reported that investors had grown more concerned about Jooste’s secretive and opaque corporate structure.

Financial Mail journalists, backed by the Panama Papers, claimed that Jooste held undisclosed shares in these subsidiary firms before they legally joined the Steinhoff fold and that they were bought at a premium to their worth.

They argued that George Alan Evans and Malcolm King would have established and overseen this network of leading enterprises.

On December 4, 2017, Steinhoff Holdings announced that the company would issue unaudited annual results, and the following day, Jooste resigned as CEO amid charges of fraud and wrongdoing.

He then resigned from Phumelela Gaming & Leisure, Kenilworth Racing, and Mayfair Speculators. Jooste also offered his resignation as a chartered accountant, which SAICA rejected, instead suspending him pending the conclusion of disciplinary procedures.

According to Jooste, who was earning R2.5 million ($190,000) per month at the time, the Steinhoff board objected to his plan to recruit new auditors to sign off on the financials.

Markus Jooste Steinhoff scandal

Manager Magazin stated in August 2017 that Jooste was under investigation by German authorities. In response, Steinhoff’s stock dropped 16% on the JSE but recovered after the business refuted the charges.

This was followed by claims of accounting irregularities made by Steinhoff’s former POCO subsidiary. Steve Booysen also informed the board of potential accounting issues following consultations with Deloitte.

Jooste resigned as CEO of Steinhoff in December 2017, after the business admitted to “accounting irregularities” within the group and revealed that it had hired PwC to investigate these.

Chairwoman Heather Sonn later disclosed that Steinhoff’s proprietary electronic data had been destroyed, complicating the investigation.

In a letter announcing his departure, Jooste apologized for “big mistakes” and causing negative publicity for the company.

In an SMS sent on December 6 to former Steinhoff director Jo Grove, Jooste allegedly stated that he attempted to conceal the impact of losses incurred by Steinhoff’s American holdings.

Viceroy Research promptly tweeted a link to its 37-page research, detailing how Steinhoff allegedly used off-balance-sheet businesses to hide losses and boost profitability.

Between 5 and 7 December, Steinhoff’s share price collapsed from R46.25 to R10, and its bonds followed suit.

Moody’s downgraded Steinhoff notes from investment grade (Baa3) to junk (B1). Christo Wiese’s Upington Investment Holdings, which owned more than 30% of Steinhoff stock, was the greatest loser in the crash.

South Africa’s PIC (7%), Coronation, and BlackRock all suffered multibillion-dollar losses. The European Central Bank sold its Steinhoff bonds after they had depreciated by 50%, and JPMorgan, Bank of America, Citigroup, and Goldman Sachs all reported significant loan losses.

Lenders were owing more than €9 billion ($10.6 billion), but in June 2018, the majority agreed to a debt standstill, avoiding insolvency.

It quickly became known as the biggest business scandal in South African history and the biggest corporate crash in the country’s history.

Jooste’s resignation reduced the worldwide furniture and clothes retailer’s worth by $11.4 billion. This had a knock-on effect on several other companies, notably its subsidiary Steinhoff Africa Retail (Star), which may have guaranteed some of Steinhoff’s liabilities.

In seven days of trading, the Johannesburg market suffered losses reaching around R295 billion ($24 billion), comparable to 8% of South Africa’s GDP.

Steinhoff’s share price fell to R4.50 (down from R51.40 on December 1) after the company’s cumulative debt of R161 billion ($12.8 billion) was disclosed.

By late December, Steinhoff shares were on the verge of collapse, as management was unable to determine the scope of accounting problems or provide assurances about individual companies’ cash flows.

Steinhoff, on the other hand, received approval to roll over €690 million in financing, and its US subsidiary Mattress Firm secured a $225 million loan from Barclays. Steinhoff also sold PSG shares for R4.7 billion to increase liquidity.

Steinhoff’s consolidated statements for October 2016 to September 2017 were released in May 2019, and they featured restatements of its financials for both 2014-15 and 2015-16. The supposed €1.4 billion net profit for the 2015-16 fiscal year was corrected as a €237 million loss.

The FSCA responded to this acknowledgment of false and misleading claims by imposing an R1.5 billion fine on the company, which was eventually lowered to R53 million and paid without protest.

The JSE, relying in part on an 11-page summary of Steinhoff’s proprietary PwC report, found Jooste guilty of two violations of listing requirements and imposed a maximum fine of R15 million on him personally, as well as a 20-year ban on him acting as a director of a listed company. The FSCA upheld these findings in 2023.

Following the crisis, reports showed that Jooste’s hard-nosed managerial style earned him the nickname “the seagull” because he would “fly in and shit all over his subordinates before flying out.”

Media publications also identified his alleged mistress, who occupied a beautiful apartment in Bantry Bay, owned by Malcolm King.

Markus Jooste Investigations and litigation

PwC was charged with investigating possible accounting irregularities or non-compliance with laws and regulations, and the resumption of audited statements was contingent on the outcome.

In December 2017, German prosecutors announced that they were still investigating four current and former management of a group (known in the German press as Steinhoff) for accounting fraud.

In February 2018, Steinhoff revealed that they had submitted a report on Jooste to the Hawks on suspicion of fraud, for investigation and possible prosecution.

Christo Wiese’s Titan Group filed a claim against the Steinhoff company for R59 billion ($4.8 billion) to recoup financial investments made in 2015 and 2016. The chances for this allegation are hampered by the fact that Wiese has been Steinhoff’s director since 2013.

Wiese held a 22% stake in Steinhoff, and the European component appears to have been susceptible to margin loans with various banks.

Absa Bank and Investec Plc applied to liquidate Mayfair Speculators in December 2017, after Mayfair’s Steinhoff shares failed to provide adequate collateral for its overdraft facilities.

Absa, which was owed R350 million, raised concerns about R1.5 billion in assets transferred as a dividend in specie to Mayfair’s holding company in August 2017.

According to court filings, Mayfair owes more than R1.2 billion ($94 million) to Sanlam Capital Markets, Investec Plc, and Absa combined.

Mayfair revealed liabilities of R1 billion and assets of R350 million. The Western Cape High Court postponed the banks’ application, and the lenders later agreed to allow Mayfair an extension until the end of 2018 to facilitate a favorable sale of its real estate and racehorses. Lenders held Mayfair liable for R2.08 billion in total.

In June 2018, the VEB, a Dutch shareholders association, sued Deloitte in Rotterdam for failing to verify the accounting of retailer Steinhoff Int. NV. The group intended to hold the directors, corporations, accountants, and maybe the banks that supported Steinhoff’s IPO, jointly liable.

The German raid in 2015 uncovered documents purportedly signed by Andreas Seifert, co-managing director of the furniture business XXXLutz. Seifert denies ever seeing or signing the papers and has been charged with document falsification.

Following successive actions against Steinhoff in three countries, Seifert was able to establish his controlling ownership in POCO in April 2018, which Steinhoff denied.

Jaap du Toit and the trustees of Le Toit Trust filed an R740 million claim against Jooste and his former colleague Ben la Grange in August of 2018. The suit relates to PSG shares that Du Toit traded for Steinhoff shares in 2015.

When Jooste appeared before South African parliamentarians in September 2018, he denied knowledge of any accounting violations on Steinhoff’s behalf.

He indicated that Deloitte’s independence was compromised in Steinhoff’s contacts with Andreas Seifert, forcing him (Jooste) to urge the appointment of new auditors and the delay of the release date of audited results to the end of January 2018.

Jooste believes that this would have prevented the group’s financial calamity. Jooste stated that from 2015 onwards, Andreas Seifert managed to convince German authorities to conduct various tax investigations into Steinhoff, in addition to attempting to manipulate public prosecutors, capital market regulators, and the press to gain information on Steinhoff, which could affect the outcome of ongoing civil litigations between Seifert and Steinhoff in three countries.

Jooste was defended by DKVG lawyer Callie Albertyn and advocates Jeremy Muller and Matthew Blumberg in his first court trial in August 2019, during which Steinhoff sought to recoup pay and bonuses paid to Jooste and La Grange.

On March 4, 2021, German prosecutors in Oldenburg reported that Markus Jooste and three others had been covertly accused four months prior with the first charges from the German investigations.

Markus Jooste’s Personal Life

The love of betting on horse races and postal labor were traits that Markus Jooste’s father instilled in him. He has a sister and two brothers.

Ingrid Jooste is the wife of Markus Jooste. They have been married for a long time and have three kids. A boy and two girls are the children of Jooste and his wife.

Markus Jooste Net Worth

One of the richest and most well-known men in South Africa and on the continent is Markus Jooste. He has long maintained a high net worth. His income reportedly comes from a variety of sources. He was Steinhoff’s CEO at the time. He is a successful horse breeder as well. He is recognized as one of the richest businessmen in South Africa, with a net worth of more than $400 million. Markus Jooste is the owner of some luxurious homes in South Africa and other countries. Many South Africans have questioned the sources of his money after he was embroiled in several controversies.

Markus Jooste Death

Jooste died by suicide on March 21, 2024, near his Hermanus home. The suicide occurred a day before he was supposed to turn himself over to law enforcement.

Markus Jooste Social Media

There are no social media accounts associated with Markus Jooste. Since his resignation as CEO of Steinhoff International Holdings in 2018 and the company’s share price plummeted as a result of an accounting controversy, he has not been active on social media.

Jooste formerly held accounts on Facebook, LinkedIn, and Twitter. He has since removed all of his social media accounts, though. Luxury automobiles and a home are among Markus Jooste’s possessions.

Markus Jooste Qualifications

Markus Jooste holds both an honors degree from the University of Cape Town and a BAcc from Stellenbosch University. After starting the industry with 250 horses in the 1990s, he is now Africa’s second-largest investor in horse racing. Jooste presided over Steinhoff as its CEO.

Where did Markus Jooste matriculate?

Jooste, born on January 22, 1961, was raised in Pretoria and matriculated in 1978 at Afrikaanse Hoër Seunskool, known as Affies.

Where is Markus Jooste now?

Owner of the biggest horse stables in South Africa and a passionate horse racer, Jooste. He is a member of the so-called “Stellenbosch Gang,” a collection of powerful white South African businessmen who live and work in Stellenbosch, a picture-perfect, predominately White community in South Africa’s Cape Winelands.

Does Markus Jooste have children?

Jooste was charged in Germany on claims that he orchestrated the accounting fraud, which he disputed. The former CEO maintained a low profile, making only one public appearance before South African MPs in 2018 to explain his part in the collapse. Jooste and his wife, Ingrid, had two daughters and one boy.

When was Markus Jooste born?

Markus Johannes Jooste, a businessman from South Africa and a former CEO of Steinhoff International, was born on January 22, 1961.

When did Markus Jooste join Steinhoff?

After orchestrating the sale of a South African retail chain to Steinhoff’s German owners in 1988, Jooste joined the company. He is an enthusiastic owner of thoroughbred horses, and his colt Variety Club won the South African Horse of the Year award twice.

Will Markus Jooste be prosecuted?

Markus Jooste will finally make an appearance in court on Tuesday—in Germany. Since Steinhoff’s demise a little more than five years ago, this is the first criminal accusation brought against Jooste. He might go to jail if found guilty.

What did Markus Jooste study?

After becoming a chartered accountant in his twenties, he was named finance director of a publicly traded corporation. At 27, he became the financial director of GommaGomma, where he met German entrepreneur Claas Daun, who mentored him in business.

Where is Markus Jooste’s house?

According to online accounts, Jooste spent his final days at his holiday home in Hermanus, which was previously owned by billionaire Johann Rupert. Jooste died a day after he was fined R475 million by the country’s financial sector watchdog, the Financial Sector Conduct Authority (FCSA).