(Alliance News) - A German court said Monday it would put on trial two former managers of scandal-hit retail giant Steinhoff International Holdings NV, accused of using fake transactions to artificially inflate the group's profits.
Prosecutors announced charges in March against four suspects, but the regional court in the city of Oldenburg said the cases of two of the accused who live abroad will be handled separately.
Prosecutors allege that "fictitious transactions" worth more than EUR1.5 billion were carried out to boost the company's books, while real estate assets were allegedly inflated by EUR820 million.
The four accused have not been named by the court, but media reports say Steinhoff's former CEO Markus Jooste is among them.
Steinhoff was hit by a huge scandal in 2017 when it was investigated on suspicion of fraud, with a reported EUR6 billion hole in its accounts.
The South Africa-based company, which is listed in both Frankfurt and Johannesburg, saw nearly 98% of its share value wiped out as it faced a barrage of litigation from aggrieved shareholders and business partners, including former chairman Christo Wiese.
Jooste resigned after the scandal broke but denied all knowledge of accounting fraud.
Steinhoff was fined ZAR13.5 million by the Johannesburg Stock Exchange last October for breaching listing requirements including publishing "false and misleading" information.
Steinhoff shares closed up 7.3% at ZAR2.49 in Johannesburg on Monday.
source: AFP
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