Key Takeaways
- A former Steinhoff director, Iwan Peter Schelbert, has been sentenced to five years’ imprisonment for fraud involving over R376 million.
- Schelbert pleaded guilty and entered into a plea and sentence agreement with the State.
- The fraud involved the creation of a fake invoice and supporting documents to inflate Steinhoff’s financial statements.
- The case is part of a larger investigation into Steinhoff, with two other accused individuals still awaiting trial.
- The National Prosecuting Authority (NPA) and the Directorate for Priority Crime Investigation (the Hawks) have welcomed the conviction and sentence as a significant milestone in the case.
Introduction to the Case
A former director of Steinhoff, Iwan Peter Schelbert, has been sentenced to five years’ imprisonment after being convicted of fraud involving more than R376 million. The sentence was handed down by the Pretoria Specialised Commercial Crimes Court, which imposed a direct imprisonment term in accordance with the Criminal Procedure Act. Schelbert, a 63-year-old from Paarl in the Western Cape, had served as a director and board member of Steinhoff at Work from June 2004 until March 2018. His conviction and sentence are a significant development in the long-running Steinhoff matter, which has been the subject of extensive investigation and prosecution.
The Fraud Scheme
According to the National Prosecuting Authority (NPA), Schelbert’s fraud scheme involved the creation of a fake invoice to a company based in Switzerland, TG Sources SARL. The invoice was generated in November 2016, while Schelbert was acting on instructions from then chief financial officer Andries Benjamin La Grange. Additional supporting documents were subsequently created by Stephanus Johannes Grobler and others to falsely portray the invoice as reflecting a legitimate transaction between Steinhoff at Work and TG Sources SARL. Payments were then made based on the fraudulent documentation, resulting in the inflation of Steinhoff’s financial statements by more than R376 million. The scheme was a complex and sophisticated one, requiring significant planning and coordination to execute.
The Investigation and Prosecution
The investigation and prosecution of Schelbert’s case required extensive collaboration and technical expertise due to the scale and complexity of the matter. The NPA and the Directorate for Priority Crime Investigation (the Hawks) worked closely together to gather evidence and build a case against Schelbert and other accused individuals. The case against Schelbert was ultimately resolved through a plea and sentence agreement, in which he pleaded guilty and agreed to cooperate with the authorities. The NPA and the Hawks have welcomed the conviction and sentence, describing it as the third successful conviction in the Steinhoff matter.
The Broader Implications
The conviction and sentence of Schelbert are significant not only because of the severity of the fraud involved but also because of the broader implications for the Steinhoff case. The case against two other accused individuals, Hein Adendaal and Stephanus Johannes Grobler, is still ongoing, with a trial date set for February 6, 2026. The outcome of these proceedings will be closely watched, as it will provide further insight into the extent of the fraud and corruption that occurred at Steinhoff. The Steinhoff case has already had significant consequences for the company and its stakeholders, including a major decline in the company’s stock price and a loss of investor confidence.
Conclusion
In conclusion, the conviction and sentence of Iwan Peter Schelbert are a significant milestone in the Steinhoff case, highlighting the seriousness of the fraud and corruption that occurred at the company. The case demonstrates the importance of effective investigation and prosecution in holding individuals accountable for their actions and preventing similar crimes from occurring in the future. As the case against the remaining accused individuals continues, it is likely that further details will emerge about the extent of the fraud and corruption at Steinhoff, and the consequences for those involved will be severe. The Steinhoff case serves as a reminder of the importance of corporate governance, transparency, and accountability in preventing fraud and corruption, and the need for effective regulation and enforcement to protect investors and stakeholders.
