South Africa: Ex-Deloitte Auditor Faces Disciplinary Action Over Steinhoff

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An ex-Deloitte LLP partner is facing disciplinary action in the Netherlands for an improper audit of Steinhoff International Holdings NV prior to the South African retailer’s near collapse more than three years ago.

The Dutch Authority for the Financial Markets accuses Patrick Seinstra of failing “to obtain sufficient and appropriate audit evidence from the annual accounts,” according to papers from the hearing.

In the probe that followed the scandal, PwC uncovered 6.5 billion euros of irregular transactions between Steinhoff and eight firms between 2009 and 2017.The AFM’s claims specifically relate to Steinhoff Europe, where the PwC forensic investigation showed a large part of the alleged fraud took place. The retailer’s European accounts were audited by Commerzial Treuhand GmbH, and the regulator says Seinstra failed to check the German firm’s submission was correct.

 

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