JSE investigates Steinhoff for suspected accounting irregularities

JOHANNESBURG, Dec. 11 (Xinhua) -- The Johannesburg Stock Exchange said on Monday it is instituting investigations into Steinhoff International, which is accused of accounting irregularities.

Steinhoff International, a multinational company with presence in more than 30 countries, has witnessed an 83 percent fall in its share price since the appearance of allegations of unethical conduct.

The firm's CEO, Markus Jooste, has resigned.

"The JSE recognizes the serious impact the recent disclosures by Steinhoff International regarding accounting irregularities has had on investors," the JSE said in a statement. "The exchange has launched an investigation to determine if there have been any breaches of its listing requirements."

"This includes any breaches in relation to previous financial disclosures made to the public by Steinhoff International," the statement said.

"With all of the information currently at our disposal, the JSE remains of the view that Steinhoff International's listing on the JSE should not be suspended and that trading in its shares on the JSE should be allowed to continue," the statement said.

Steinhoff is also traded on the Frankfurt Stock Exchange, where it has not been suspended. JSE said if it suspends Steinhoff, the move would place investors trading on the JSE at a disadvantage to those who are able to trade in Steinhoff shares at the Frankfurt bourse. Enditem