In a deal that could herald the end of one of Deloitte’s messiest chapters in SA, the global big four audit firm – accused of having failed to detect accounting fraud at Steinhoff – has offered more than R1bn to help its former client settle claims related to the scandal.

A Business Day report says Deloitte – as Steinhoff’s longstanding auditor – came under fire after it emerged there was a R110bn hole in the global retailer’s accounts in 2017, causing a share collapse and leading to lawsuits from former business partners and aggrieved shareholders, including former chair Christo Wiese.

Its offer, which is in exchange for ‘certain waivers’, will be added to Steinhoff’s own R134bn settlement in cash and shares in local subsidiary Pepkor worth the equivalent of R14bn.

Under the Deloitte deal – subject to completion by Steinhoff of legal procedures related to companies in financial distress in the Netherlands and SA – Deloitte will pay as much as €55.34m (nearly R1bn) to those who relied on dodgy numbers to trade in Steinhoff shares, and €15m towards other claims.

Deloitte said in a statement it supports Steinhoff’s proposed global settlement as it will allow the retailer to continue as a business and ‘closes the chapter on multiple claims, as well as prolonged and costly litigation’.

But ‘Deloitte does not in any way admit liability for the losses incurred by Steinhoff and its stakeholders as a result of the accounting irregularities at Steinhoff’, the statement says.

Full Business Day report