A former Steinhoff audit executive has become the fifth person convicted in the multi-billion rand corporate fraud scandal that shook South Africa’s financial markets nearly a decade ago.
Hein Odendaal (68) was sentenced by the Pretoria Specialised Commercial Crime Court on Thursday to a fine of R2 million or four years imprisonment after pleading guilty to contravention of the Prevention and Combating of Corrupt Activities Act.
Odendaal was also handed an additional two years imprisonment, wholly suspended for five years, and ordered to undergo one year of correctional supervision. The sentence follows a plea and sentence agreement with the state.
The Steinhoff collapse
The Steinhoff scandal erupted in December 2017 when the retail giant’s shares plummeted after accounting irregularities surfaced, wiping out billions of rands in shareholder value. Former chief executive Markus Jooste resigned as the extent of the fraud began to emerge.
An independent investigation by PwC found that a small group of senior executives and outsiders had orchestrated widespread accounting fraud, inflating profits over several years. The fraudulent activity was estimated to have overstated the company’s books by at least R38 billion, with total restated equity allegedly exceeding R155 billion.
The collapse devastated pensioners and shareholders who lost substantial investments when Steinhoff’s share price crashed from over R60 to less than R2 in a matter of days.
Jooste’s death
The scandal’s central figure, Markus Jooste, died by suicide on 21 March 2024, shortly after the Financial Sector Conduct Authority imposed a record R475 million fine on him for his role in the accounting irregularities. The fine was the largest administrative penalty ever imposed on a single individual in South Africa.
Jooste’s death came just hours after an arrest warrant was issued for him. He had been facing criminal charges related to the fraud but had not appeared in court.
Odendaal’s role
In his position at Steinhoff, Odendaal failed to report the fraud committed through fictitious income that led to false and misleading audited financial statements. His failure to alert authorities constituted a breach of his legal obligations.
Odendaal surrendered himself to the Hawks’ Serious Commercial Crime Investigation on 14 February 2025, just hours before his scheduled court appearance at the Pretoria Specialised Commercial Crimes Court.
Other convictions
Odendaal’s conviction is the fifth secured by authorities in the protracted investigation. Previous convictions include:
Iwan Peter Schelbert, a former director and board member of Steinhoff at Work, was sentenced in January this year to five years imprisonment for fraud involving R376 million.
Gehardus Burger pleaded guilty in September 2024 to insider trading charges related to Steinhoff shares and received a suspended five-year prison term. The court ordered the forfeiture of proceeds from the sale of shares to the state.
The matter against another former executive, Stephanus Grobler, is scheduled for 14 May. The Financial Sector Conduct Authority is demanding over R350 million from Grobler for his alleged role in producing misleading financial statements.
Investigation continues
The acting national head of the Directorate for Priority Crime Investigation, Lieutenant General Patrick Mbotho, welcomed the sentence and encouraged the investigation and prosecution teams to remain focused on bringing all those involved in the matter to justice.
The Steinhoff case remains one of South Africa’s largest corporate fraud scandals, with investigators continuing to pursue individuals allegedly involved in the scheme that caused losses running into hundreds of billions of rands.
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