The Pretoria Specialised Commercial Crimes Court sentenced Andries Benjamin La Grange, former Chief Financial Officer of Steinhoff, to 10 years’ direct imprisonment, with five years suspended.
Story Summary:
- Andries Benjamin La Grange, former CFO of Steinhoff, has been sentenced to 10 years’ imprisonment, with five years suspended, after entering a plea deal with the State.
- La Grange was convicted of fraud involving R367 million linked to the 2016 financial statements of Steinhoff.
Andries Benjamin La Grange plea deal explained
This was part of a plea agreement he reached with the State after pleading guilty to fraud charges relating to his involvement in manipulating Steinhoff’s financial statements in 2016.
Under the plea agreement, La Grange is required to testify in any future criminal proceedings against Steinhoff’s directors, officers, or employees.
The National Prosecuting Authority (NPA) welcomed the deal, describing it as a significant step in holding accountable those involved in one of South Africa’s largest corporate fraud scandals.
“Securing a second conviction and sentence in the Steinhoff matter in just a week is a reflection that even though the wheels of justice turn slowly, impunity no longer prevails, and those accused of complex commercial crime now know that it is a matter of when the dreaded knock on their door comes,” Gauteng NPA spokesperson Lumka Mahanjana remarked.
What was La Grange’s role in the Steinhoff fraud case?
La Grange, as CFO, played a pivotal role in Steinhoff’s accounting fraud, which led to a loss of over R367 million.
Alongside Markus Jooste, the former CEO, La Grange created fraudulent documentation to inflate Steinhoff’s financial statements.
These actions were part of a broader scheme to mislead investors and stakeholders regarding the company’s financial health.
Following an investigation by the Johannesburg Stock Exchange (JSE), La Grange was fined R2 million and barred from holding any directorship in a public company for 10 years.
His plea deal also comes after Jooste’s tragic suicide, which occurred on the eve of his planned arrest earlier this year.