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No one could detect Steinhoff irregularities – Matjila

Dan Matjila, former chief executive of the Public Investment Corporation, has said the asset manager was concerned with governance at Steinhoff, but no prudent investor would be able to pick up irregularities at the retail group.

Matjila gave evidence before the PIC commission of inquiry on Tuesday. The commission, chaired by Justice Lex Mpati, is investigating allegations of wrongdoing at the PIC, which oversees R2trn in state funds.

Before the collapse of the Steinhoff share price in late 2017, related to accounting irregularities, the PIC had increased its shareholding in the retail group.

Board representation ‘critical’

Matjila told the commission the PIC was concerned with governance at the retailer but could not influence any changes without being represented on the board. This led to the PIC acquiring 3.5% of shares that would give the PIC special voting rights. The PIC was ultimately represented on the Steinhoff board by Jayendra Naidoo.