Key Takeaways
- Iwan Peter Schelbert, a former director and board member of Steinhoff at Work, has been sentenced to five years’ imprisonment for fraud involving R376m.
- Schelbert entered into a plea and sentence agreement with the state and was convicted of generating a fraudulent invoice to a Swiss-based company.
- The fraudulent scheme resulted in the inflation of Steinhoff’s financial statements by more than R376m.
- The case against the remaining accused, Hein Adendaal and Stephanus Johannes Grobler, has been postponed until February 6 for further proceedings.
- The conviction marks the third secured in the Steinhoff matter, demonstrating the commitment of the NPA and the Hawks to holding perpetrators accountable.
Introduction to the Case
The Pretoria specialised commercial crimes court has handed down a significant sentence to a former director and board member of Steinhoff at Work, Iwan Peter Schelbert, for his role in a large-scale fraud scheme. Schelbert, a 63-year-old resident of Paarl in the Western Cape, was convicted of generating a fraudulent invoice to a Swiss-based company, TG Sources SARL, in 2016. This invoice was part of a larger scheme to inflate Steinhoff’s financial statements by more than R376m. The conviction and sentence are a major development in the Steinhoff matter, one of the largest and most complex corporate fraud cases in South Africa’s history.
The Fraudulent Scheme
According to the National Prosecuting Authority (NPA), Schelbert generated the fraudulent invoice on November 21, 2016, while acting on instructions from the then CFO, Andries Benjamin la Grange. The invoice was then supported by false documentation created by Schelbert’s co-accused, Stephanus Johannes Grobler, and others. This documentation was used to effect payments to TG Sources SARL, falsely representing that the invoice reflected a legitimate transaction between Steinhoff at Work and the Swiss-based company. The NPA stated that this fraudulent scheme resulted in the inflation of Steinhoff’s financial statements by more than R376m, highlighting the significant scope of the fraud.
The Conviction and Sentence
Schelbert entered into a plea and sentence agreement with the state, which led to his conviction and sentence of five years’ imprisonment. The NPA welcomed the conviction and sentence, stating that it marked the third conviction secured in the Steinhoff matter. The spokesperson for the NPA, Lumka Mahanjana, noted that this outcome demonstrated the commitment of both the NPA and the Hawks to holding perpetrators accountable in complex corporate fraud cases. The sentence serves as a significant milestone in the Steinhoff matter, which has been ongoing for several years.
The Ongoing Case
While Schelbert has been convicted and sentenced, the case against the remaining accused, Hein Adendaal and Stephanus Johannes Grobler, is ongoing. The matter has been postponed until February 6 for further proceedings, allowing the NPA and the Hawks to continue their investigation and preparation for the trial. The NPA and the Hawks remain committed to securing convictions in the Steinhoff matter, ensuring that those responsible for the large-scale fraud are held accountable. The ongoing case highlights the complexity and scope of the Steinhoff matter, which involves multiple accused and a significant amount of fraudulent activity.
Conclusion and Implications
The conviction and sentence of Iwan Peter Schelbert serve as a significant development in the Steinhoff matter, demonstrating the commitment of the NPA and the Hawks to holding perpetrators accountable in complex corporate fraud cases. The case highlights the importance of effective corporate governance and internal controls in preventing large-scale fraud. The Steinhoff matter has significant implications for companies and individuals involved in similar activities, serving as a warning that fraudulent activity will be investigated and prosecuted. As the case against the remaining accused continues, it is likely that further convictions and sentences will be handed down, bringing closure to one of the largest and most complex corporate fraud cases in South Africa’s history.
