DHAHINI NAIDU: Move against Berdine Odendaal over Steinhoff assets is positive for SA law

Developments in the Steinhoff scandal, particularly the forfeiture of assets belonging to Markus Jooste’s former partner, Berdine Odendaal, have set a significant legal precedent in the fight against corporate fraud in SA.

Within the clutter of financial irregularities that came to light after the Steinhoff scandal, the Reserve Bank and other regulatory bodies have been pivotal in untangling and addressing the malfeasance.

The legal framework used in the Odendaal case, particularly under the Exchange Control Regulations, allowed for the attachment and forfeiture of assets even in the absence of a criminal conviction. This is crucial as it highlights the proactive stance taken by the Treasury under these regulations, which prioritise the prevention of asset dissipation over waiting for lengthy criminal trials.

Regulation 22A of the Exchange Regulations plays a critical role. It permits the Treasury to attach assets linked to or suspected of being linked to contraventions of the regulations. This was effectively applied in Odendaal’s case, where assets were seized based on their alleged connection to illicit financial flows from Steinhoff, mediated by Jooste.

The significant aspect here is the regulatory provision that allows for such actions without the prerequisite of a conviction, thereby fast-tracking the process of asset recovery.

The forfeited assets, including cash and properties, are transferred to the National Revenue Fund. This action is not merely about penalising the wrongdoers, but also about redirecting the ill-gotten gains towards the public treasury, which can then be used for national development.

This serves a dual purpose: it acts as a deterrent against corporate fraud and aids in the economic restitution to the state, which might have been undermined by such fraudulent activities.

A critical aspect of the discussion is the legal standing in asset forfeiture cases. Odendaal, described as a beneficiary rather than the asset owner, faced legal hurdles in challenging the forfeiture.

The actions taken in the Steinhoff case reflect a broader regulatory and legal shift towards greater accountability and transparency in corporate SA. This case is likely to influence future legal strategies and corporate policies, stressing the importance of ethical management and the severe repercussions following its breach.

The asset forfeiture in the Steinhoff scandal is an important event in SA legal practice, illustrating the vigorous application of laws designed to combat financial crimes, and reaffirms the strength of the SA legal system.

• Dhahini Naidu is a director at Fairbridges Wertheim Becker Attorneys