Developments in the Steinhoff scandal – particularly the forfeiture of assets belonging to Markus Jooste’s former partner Berdine Odendaal – have set a significant legal precedent in the fight against corporate fraud in SA, said Fairbridges Wertheim Becker Attorneys’ Dhahini Naidu in a Business Day report.

She said within the clutter of financial irregularities that came to light after the Steinhoff scandal, the SARB and other regulatory bodies have been pivotal in untangling and addressing the malfeasance.

‘The legal framework used in the Odendaal case, particularly under the Exchange Control Regulations, allowed for the attachment and forfeiture of assets even in the absence of a criminal conviction. This is crucial as it highlights the proactive stance taken by the Treasury under these regulations, which prioritise the prevention of asset dissipation over waiting for lengthy criminal trials.’

She said regulation 22A of the Exchange Regulations plays a critical role.

‘It permits the Treasury to attach assets linked to or suspected of being linked to contraventions of the regulations. This was effectively applied in Odendaal’s case, where assets were seized based on their alleged connection to illicit financial flows from Steinhoff, mediated by Jooste. The significant aspect is the regulatory provision that allows for such actions without the prerequisite of a conviction, thereby fast-tracking the process of asset recovery.’

Naidu notes the forfeited assets – including cash and properties – are transferred to the National Revenue Fund.

‘This action is not merely about penalising the wrongdoers, but also about redirecting the ill-gotten gains towards the public treasury, which can then be used for national development.’

She added: ‘A critical aspect of the discussion is the legal standing in asset forfeiture cases. Odendaal, described as a beneficiary rather than the asset owner, faced legal hurdles in challenging the forfeiture.’

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