The Government Institutions Pension Fund (GIPF) has so far recovered N$326 million of the N$677 million it invested in embattled South African retailer Steinhoff.
This comes as the fund has also filed a N$729 million claim against the Steinhoff, with the outcome expected to determine whether or not GIPF will recover the invested funds.
“We invested through various asset managers an amount of N$ 677,458,477.43. At this point we have recouped N$325 969,660.21. The final loss or gain situation will be determined on how much the Fund will gain from legal claims still in progress,†GIPF CEO / Principal Officer, David Nuyoma said.
Steinhoff is at the centre of South Africa’s biggest fraud scandal, and is facing more than 100 legal claims totalling more than R130 billion by shareholders who maintain they were duped into buying a worthless stock through misleading information.
The global retailer offered a settlement of R24 billion in August last year, hoping to appease claimants and prevent court action that could force its liquidation.
Nuyoma said the fund, which has since disinvested from the company, was now awaiting determination of how much it will be awarded from its claim after a deal was reached between Steinhoff and various investors.
“GIPF did institute a legal claim against Steinhoff. Steinhoff has offered to settle the claims including that of GIPF. We claimed a maximum of N$728,577,021. The amount of award has not yet been determined,†Nuyoma said, adding that the case against Steinhoff will be closed once the fund gets its settlement amount.
Quizzed on what measures the GIPF had put in place to safeguard against any future losses emanating from bad investments, Nuyoma said the fund, through its appointed asset managers, will continue to enhance its due diligence and monitoring of investee companies.
“In addition, regulatory authorities and stock exchanges continue to tighten up their regulations of all companies listed on their exchanges to mitigate instances of fraud being perpetrated against investors. Where fraud or other criminal irregularities have been perpetrated, action will be taken as is the case in Steinhoff,†he said.
The pension fund is also currently exposed to Russia, with investments worth around N$568 million according to local media.
Steinhoff Holdings International – a global retailer with more than 40 brands including Ackermans, Buco, Dunns, Flash, HiFi Corp, Incredible Connection, John Craig, Pennypinchers, Pep, Refinery, Russels, Shoe City, Tekkie Town, Timbercity and Unitrans among others – has over the past two years struggled to starve off disgruntled investors.
Former Steinhoff Chairperson and billionaire, Christo Wiese, has received cash and a Pepkor stake worth more than R7 billion from Steinhoff as part of a settlement.Â
This was after Wiese had put in a US$4 billion (R60 billion) claim with Steinhoff for his losses, but as part of the settlement, agreed to much less.
Retail investors who submitted claims to Steinhoff can expect to get payouts of between R2 and R8 a share according to South Africa media.
