The South African Reserve Bank (SARB) and the Ibex Group, formerly Steinhoff International Holdings N.V., have settled a long-running dispute with a R6.3-billion forfeiture (plus interest) to the state, closing a tumultuous chapter that began with the 2017 accounting scandal.
The agreement, announced this week, resolves allegations of violations of the Exchange Control Regulations, 1961. It also paves the way for the Ibex Group to wind down operations. This while reinforcing South Africa’s reputation as a robust financial market.
Accounting irregularities
The Steinhoff crisis erupted in December 2017 when accounting irregularities triggered a catastrophic 90% plunge in the company’s share price on the Frankfurt and Johannesburg stock exchanges, wiping out billions in market capitalisation.
With external debts exceeding €10-billion (R155-billion), the group faced collapse. This threatened forced asset sales, massive losses for investors, and job cuts across South Africa and abroad.
Between 2018 and 2023, complex multi-jurisdictional debt restructuring saved the group from liquidation. The Ibex Group repaid over R28-billion to South African banks and R18.5-billion to local investors through a Global Settlement valued at R29.6-billion. This was approved by international and South African courts.
The Public Investment Corporation, a key investor, was a major beneficiary, securing funds for pensioners. Foreign creditors agreed to defer claims until June 30, 2026, prioritising South African creditors.
Exchange control regulations
“This restructuring was a lifeline, ensuring South African stakeholders were protected first,” noted SARB spokesperson Lerato Ndlovu.
Tensions arose in 2023 when SARB’s investigation into alleged contraventions of exchange control regulations led to administrative actions, including the R6.3-billion forfeiture and restrictions on Ibex’s assets, such as shares in Pepkor Holdings Limited. Legal battles ensued, with Ibex and some creditors challenging SARB’s moves.
After extensive negotiations, informed by legal advice, both parties reached a comprehensive settlement. The agreement saw Ibex withdraw its legal challenges, SARB lift asset restrictions, and permissions granted for Ibex’s Dutch court-approved wind-down process. No further enforcement actions will be taken by SARB.
Prohibition orders on Ibex shares in Pepkor Holdings were also lifted. On July 21 2025, Ibex announced that it will exit its 28% stake in Pepkor.
“Both the SARB and the Ibex Group consider the settlement reasonable, proportionate and justifiable. In light of the complex and competing interests,” said the central bank.
