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Steinhoff says it is agreed to cover a 'substantial portion of the costs' for the state to engage audit firm PwC to perform forensic work as part of its criminal investigation into fraud at the retail conglomerate.
In an update to shareholders on Tuesday, Steinhoff said South African authorities had approached PwC - which last year completed an independent forensic report commissioned by Steinhoff - and engaged them to perform "additional expert forensic work to assist in the criminal investigation".
"Steinhoff supports this initiative and has agreed to contribute funds to cover a substantial portion of the costs of the PwC work, due to the size and complexity of the investigation required," it said. It did not say what proportion of the costs it would be covering.
The group said its role would be limited to "co-operation and providing a portion of the funding for the project only".
"The funding is to be provided on an arms-length basis, with Steinhoff having no involvement in the investigation,the extent thereof and the report-back process."
Steinhoff's share price plummeted in December 2017 after its former CEO Markus Jooste abruptly resigned at the start of an accounting scandal. The group's share price plunge shrank its market capitalisation by over R200bn, incurring huge losses for investors.
Once one of the JSE's largest firms, the Steinhoff now has a market capitalisation of just over R5bn.
