The luxury wine estate previously owned by late former Steinhoff boss Markus Jooste is challenging the SA Reserve Bank over its forfeiture of millions from the company. Late controversial businessman Markus Jooste’s former luxury Lanzerac Wine Estate in Stellenbosch is contesting the SA Reserve Bank’s (SARB) decision to forfeit the R220 million facility.
The SARB’s exchange control regulations were used to order the forfeiture of the property owned by Jooste’s company, formerly Morpheus Property Investments, which he sold to billionaire Christo Wiese. According to papers filed at the Gauteng High Court, Johannesburg, formerly Morpheus Property Investments has raised constitutional issues over 22D of the Exchange Control Regulations 1961 promulgated under the Currency and Exchanges Act 1933.
Constitutional Issues Raised
In addition, the estate is challenging the doctrine of legality. The court papers filed earlier this month question the legitimacy of Regulation 22C(2)(b) of the Exchange Control Regulations, citing that it is unlawful as it permits the ‘blocking, attachment, and obtaining of interdicts’ over assets without a time limit as contemplated under section 9(2)(g) of the Currency Act.
For more information on the Currency and Exchanges Act, visit the South African Reserve Bank website. The case has sparked interest in the business community, with many following the developments to understand the implications of the SARB’s exchange control regulations on businesses in South Africa.
Background on Steinhoff
Wiese controlled much of Steinhoff, of which Jooste was chief executive officer. Over a period of about two decades, Steinhoff became the second largest furniture and home goods retailer in the world. The company was founded in Germany in 1964 by Bruno Steinhoff and he introduced the Steinhoff business to South Africa in 1997 and Steinhoff International listed on the Johannesburg Stock Exchange in 1998.
Steinhoff later further expanded and was listed on the Frankfurt Stock Exchange in Germany in 2015. At the height of its successes, Steinhoff became a global group with 130 000 employees in approximately 12 000 retail outlets in 30 countries. Following Steinhoff’s collapse, the chairperson of its audit committee reported transgressions to the authorities in terms of the Prevention and Combatting of Corrupt Practices Act (Precca).
- Investigations later revealed damning information of Jooste’s complicity in Steinhoff’s collapse
- The matter was reported to the Hawks in terms of Precca on suspicion that he has committed several offences
- At the time of Jooste’s death in March 2024 at the age of 63, the matter was still in the hands of the Hawks for further investigation and prosecution
For more information on the Prevention and Combatting of Corrupt Practices Act, visit the Department of Justice and Constitutional Development website.
