former Chief Financial Officer (CFO) Andries ‘Ben’ La Grange has been sentenced to ten years in prison after pleading guilty to fraud amounting to over R300 million. This marks another chapter in the unfolding Steinhoff financial debacle that shook South Africa’s business world in 2017.
La Grange was sentenced in the Pretoria Specialised Crimes Court, where he appeared as a key witness for the State in ongoing Steinhoff-related prosecutions. His 10-year sentence includes a suspension of five years, meaning he will serve an effective five years behind bars. This sentence is a product of a plea and sentence agreement La Grange entered into with the state.
👇🏻👇🏻👇🏻 Here’s the picture of the R300Million+ FRAUDSTER (Ben La Grange, former STEINHOFF CFO), that they don’t want you to see.
Sentenced to only 5 years after plea deal.
Didn’t realise criminals were so well dressed – Very mindful, very demure. pic.twitter.com/A3c6nMxUxY
— MissKnowItAll (@MzansiKnight) October 3, 2024
The former CFO found himself at the heart of Steinhoff’s downfall, which came to light in 2017. He was charged in June of this year with several serious offences, including racketeering, fraud, corruption, and violations of the Financial Markets Act. At that time, he was released on bail of R150,000, which came with strict conditions to ensure his cooperation and compliance.
Having initially indicated his intent to plead guilty, La Grange officially entered a plea agreement with the state. His crimes date back to between 2014 and 2016, a period during which he admitted to falsifying financial statements. These manipulations were pivotal in misrepresenting the company’s financial health. In 2022, the Johannesburg Stock Exchange fined La Grange R2 million for breaching its listing rules, further underscoring the scale of the misconduct.
The specifics of the case for which he pleaded guilty relate to the fraudulent handling of an invoice valued at over R376 million. According to South African law, fraud cases involving amounts exceeding R500,000 generally attract a minimum sentence of 15 years. However, La Grange’s punishment was reduced, given several mitigating factors.
State prosecutor, Dries Van Rensburg, explained the rationale behind the more lenient sentence.
“He has undertaken to assist and testify in further prosecutions emanating from the Steinhoff prosecutions,” Van Rensburg said.
The prosecutor also noted that La Grange’s cooperation and his status as a first-time offender contributed to the decision to grant him a reduced sentence. His willingness to assist in ongoing investigations signals his key role in the broader legal efforts to address the fallout of the Steinhoff collapse.
La Grange’s conviction makes him the second senior figure from Steinhoff to face prison time. Earlier, Dr. Gerhardus Burger, another former company executive, was convicted on insider trading charges. Burger pleaded guilty to three counts of insider trading and is currently serving a five-year prison sentence.
The financial mismanagement and fraudulent practices within Steinhoff have had far-reaching consequences, shaking investor confidence and tarnishing the company’s reputation. The consequences have been severe, with multiple arrests and ongoing investigations aimed at uncovering the full extent of the wrongdoing.
In a related incident, former Steinhoff Chief Executive Officer Markus Jooste faced his own legal and financial battles. In March of this year, Jooste was fined a staggering R475 million for his role in misleading financial statements from 2014 to 2017. This fine was a significant penalty aimed at holding him accountable for his role in the scandal. However, in a tragic turn of events, just one day after the fine was imposed, Jooste reportedly took his own life, suspected to be a suicide.
