Former Steinhoff audit executive sentenced to four years or R2m fine

A former Steinhoff group audit executive was sentenced to four years imprisonment or a R2m fine by the Pretoria specialised commercial crimes court on Thursday.

Hein Odendaal, 67, was also sentenced to two years imprisonment, wholly suspended for five years on condition that he is not convicted of contravening the Prevention and Combating of Corrupt Activities Act (Precca) during the suspension period.

The court further ordered that he undergo one year of correctional supervision in terms of the Criminal Procedure Act.

National Prosecuting Authority spokesperson Lumka Mahanjana said Odendaal was convicted after entering into a plea and sentence agreement with the state.

In his role as group audit executive at Steinhoff at Work, Odendaal was negligent as he ought to have suspected fraud by other employees within the Steinhoff group.

The matter relates to a fraudulent transaction on November 21 2016 when Iwan Peter Schelbert, acting on the instructions of COE Andries la Grange, generated a fraudulent invoice to TG Sources SARL, a company based in Martigny, Switzerland.

Former Steinhoff executive Stephanus Grobler and others then created supporting documentation and facilitated payments to falsely represent that the invoice reflected a legitimate transaction between Steinhoff at Work and TG Sources SARL.

“The fraudulent scheme resulted in the inflation of Steinhoff’s financial statements by more than R376m,” said Mahanjana.

NPA said the conviction marked the fourth secured in the Steinhoff matter.

National director of Public Prosecutions Andy Mothibi said, “these outcomes should demonstrate to the public that the NPA will continue to prosecute all cases whether in public or private sector without fear, favour or prejudice”.

The case against co-accused Stephanus Grobler, 64, has been postponed to May 14 for further proceedings.

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