South African pension fund scandal: ‘The damage will be immense’

South Africa’s government pension fund has lost billions of rand by investing in conglomerate Steinhoff. DW talks to expert Wolfgang Drechsler about how such a disaster could happen and how much can still be saved.

DW: Could Steinhoff have engaged in accounting fraud, and as a consequence, risk closing its doors?

Wolfgang Drechsler: That there has been fraud seems to be now rather obvious. But the extent of the fraud came as a surprise. That the company was a bit on the dubious side was well-known. Before this happened, people questioned the accounting practices of Steinhoff. Their habit of moving assets between countries, of parking losses or certain activities outside their official balance sheets, of having these wonderful tax rates…

Read more : Deutsche Welle, 31.01.2018