Former Steinhoff CEO, the late Markus Jooste (pictured) sent Gerhardus Burger who accompanied Steinhoff directors on overseas trips a text message advising him to sell his shares. Photographer: Armand Hough / African News Agency (ANA)
Gerhardus Diedricks Burger, the first person to be sentenced in the Steinhoff corporate fraud, is expected to testify against his accomplices.
The 79-year-old physician was sentenced in the Pretoria Specialised Commercial Crimes Court on Thursday after pleading guilty to contravention of section 78(2) of the Financial Markets Act or Insider Trading.
Burger will not serve any direct imprisonment, but has received a five-year suspended sentence on condition that he was not convicted of a similar crime during the period.
The National Prosecuting Authority said the court also issued a confiscation order for €90,000 (around R1.8 million) that was seized by Swiss authorities after the collapse of Steinhoff.
“Shortly before the collapse of Steinhoff the CEO, the late Markus Jooste sent Dr Burger who accompanied Steinhoff directors on overseas trips to look after their health and a text advising him to sell his Steinhoff shares,” NPA spokesperson in Gauteng Lumka Mahanjana said.
“Dr Burger thereafter sold all the Steinhoff shares held under the Dieter Burger and Lane Burger Trusts where his children are beneficiaries,” Mahanjana said.
“He also sold 39,722 Steinhoff shares held at Stefana Overseas Ltd, where Dr Burger was also the beneficiary, on the Swiss stock exchange.”
The NPA said shortly after the sale of the shares, Steinhoff shares plummeted and became almost worthless.
“At that point the Financial Sector Conduct Authority (FSCA) instituted investigations where Dr Burger was convicted and found guilty of insider trading for the same transactions and paid a penalty of R3 million to FSCA. FSCA then referred the matter to the NPA for criminal prosecution.”
The NPA said the Steinhoff case is one of the biggest cases of corporate fraud in the history of South Africa.
“It has been one of the most complex commercial crime cases that the DPCI and the NPA have had to deal with.
“At a point when a significant breakthrough was made to enrol the case earlier this year, the main accused, ex-CEO of Steinhoff Markus Jooste (allegedly) took his life on the eve of his arrest, thus escaping the hands of justice when it mattered the most.”
Jooste died in March this year allegedly by suicide. An inquest docket has been opened.
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