Steinhoff to Dig Deeper Into $7.4 Billion of Dodgy Deals
- Report Friday showed ex-execs structured phony transactions
- Further investigation needed to answer remaining questions
Photographer: Rodger Bosch/AFP/Getty Images
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Steinhoff International Holdings NV plans to dig deeper into the accounting misdeeds that brought the retailing giant to its knees as it seeks to get to the bottom of some $7.4 billion in fictitious or improper deals.
A forensic probe by PwC found that a small group of former executives -- with the help of others outside the company -- structured phony transactions that substantially inflated earnings and asset values, according to a 10-page summary of the report published Friday. The deals, orchestrated over several years, enabled Steinhoff to artificially boost profits, puff-up property values and inflate cash and so-called cash equivalents.