Big Businesses That created Headlines This Year – For All The Incorrect Reasons

It's been a terrible year for the international company since accounting irregularities exposed the corruption of senior management, resulting in the resignation of chief executive officer Markus Jooste.

Big Businesses That created Headlines This Year - For All The Incorrect Reasons-Surge Zirc SA
Tiger Brands logo/Photo File: Google

In the year 2018 some business boomed but a number of businesses made headlines for all the for all the wrong reasons:

1. Steinhoff

It’s been a terrible year for the international company since accounting irregularities exposed the corruption of senior management, resulting in the resignation of chief executive officer Markus Jooste.

Steinhoff International Holdings NV has been hit with one blow when another since the start of 2018: plummetting share costs, the closure of a number of its retailers, class-action lawsuits and investigations from regulators. It declared its USA pad Firm bankrupt, the Mattress Firm emerged from bankruptcy in November with $525 million in exit funding.

2. VBS Mutual Bank

The bank was placed underneath position this year when rampant pillaging by senior executives diode to a economic condition. The bank was liquidated when associate application by the prudent Authority of the South African banking concern.

The banking concern had been besieged from political parties, together with the bang and ANC, to do and save VBS.

READ MORE: Starbucks’ Expansion Runs Out Of Steam In S.Africa, Might Shutdown

According to Business Day, a report by the banking concern and Werkmans Attorneys discovered that concerning R2-billion was ransacked from the bank. It known players from the ANC and EFF who had a task within the crisis. bang deputy chair Floyd Shivambu received backlash when it had been discovered that his brother had received R16m from the ransacked quantity.

3. KPMG

The auditing firm has experienced a outcome since its 2017 scandal, that discovered that the corporate had delayed to spot inaccuracies within the auditing work in hot water Gupta-owned firms, additionally as its involvement within the now-defunct VBS Mutual Bank.

Since then, KPMG has lost 1 000 employees members, fifteen audit partners, R1-billion in revenue and high-profile clients like Gold Fields, Sasfin, Sygnia and Absa, per Business Day.

READ MORE: Capitec Pays Back Money After Shortchanging Clients At ATM

KPMG recently appointed Ignatius Sehoole, the previous deputy chief executive officer of PricewaterhouseCoopers (PwC) Southern Africa, to move up the firm from May 2019.

4. Tiger Brands

The producing company’s name suffered a serious blow this year once quite two hundred individuals died during a listeria meningitis irruption when a strain of listeria was found in Enterprise merchandise.

The irruption resulted during a decline within the consumption of ready-to-eat processed meats like polony and viennas when several retailers removed the merchandise from their shelves. It affected not solely Tiger Brands’ merchandise however additionally different brands of ready-to-eat processed meats thanks to associate overall decline in consumption.

The irruption was coupled to associate Enterprise plant in Polokwane in hand by Tiger Brands. the corporate closed the plant in Polokwane, additionally as others in Germiston and Clayville. They were re-opened later within the year.

5. Momentum

The insurer two-faced public backlash when refusing to pay a R2.4-million policy to a Durban widow on the grounds that her husband didn’t disclose a pre-existing medical condition.

Nathan Ganas died during a hail of bullets throughout a hijacking last year. Momentum refused to pay his life cowl as a result of he didn’t disclose that he had high blood augar levels.

After days of public outrage, with several threatening to cancel their policies if the corporate didn’t pay, Momentum proclaimed that it had modified its policies to pay death advantages within the case of a violent crime, no matter an individual’s case history. Momentum additionally united to pay back all of Ganas’ premiums from the 2014 policy.

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