Day: September 6, 2021

The Public Investment Corporation, Steinhoff International Holdings N.V. (SIHNV) and Steinhoff International Holdings Proprietary Limited (SIHPL) –together referred to as Steinhoff – have entered into a settlement agreement to support the implementation of the Steinhoff global settlement.

In a statement, the Public Investment Corporation (PIC) said the proposed settlement forms part of the global settlement first announced by Steinhoff in 2019 and the ongoing, related settlement processes in the Netherlands (in respect of SIHNV) and South Africa (in respect of SIHPL).

“This settlement agreement is subject to court approval which has started in the Netherlands.

“The PIC, on behalf of its clients, owned 8.56% of Steinhoff shares (as at 31 August 2021), which was acquired over time,” reads the statement on Monday.

In 2018, the PIC joined a group of approximately 40 institutional investors who brought damages claims against SIHNV before the Dutch court. A process of mediation ensued thereafter.

The PIC said it believes the proposed settlement was in the best interests of its clients, given the alternative cost of protracted litigation and related uncertainties, and the prospect of further diminishing share value.

“It attempts to provide certainty and will allow Steinhoff the opportunity to recover as a company, to continue trading as a going concern and to avoid further job losses.

“Details of the proposed settlement agreement can only be disclosed once due legal process has been concluded,” said the corporation.

The settlement agreement does not preclude the PIC from pursuing further litigation against former Steinhoff directors and employees, if found responsible for the accounting irregularities and ultimate destruction of value at Steinhoff. The PIC will continue to cooperate fully and assist law enforcement agencies in respect of any criminal proceedings.

Source: South African Government News Agency

The Ad Hoc Committee to Initiate and Introduce Legislation Amending Section 25 of the Constitution, has adopted the Constitution 18th Amendment Bill, which will see the expropriation of land without compensation embedded in the Constitution.

Committee chairperson, Dr Mathole Motshekga, said the Bill in its entirety, as well as the memorandum on the objects of the Bill, were endorsed by the majority of members in the committee.

“There were three votes against the Bill and no abstentions,” Motshekga said.

The purpose of the Bill is to amend section 25 of the Constitution, so as to provide that, where land is expropriated for land reform, the amount of compensation payable may be nil.

Furthermore, to clarify that nil compensation is a legitimate option for land reform, so as to address the historic wrongs caused by the arbitrary dispossession of land and in so doing, ensure equitable access to land and further empower the majority of South Africans to be productive participants in ownership, food security and agricultural reform programmes.

Motshekga said the Bill is the product of extensive public engagements, spanning the work of two Parliaments and three committees.

“It is a historic day as we adopt this Constitution 18th Amendment Bill, which is the product of engagement by all political parties inside the committee and through bi-laterals involving political principals and parties.

“I want to commend all Members because you were always alive to the character of our constitutional democracy, which is both representative and participatory. Today we can proudly say we are adopting a Bill that adheres to those principals,” Motshekga said.

He said the committee has carefully listened to the people of South Africa, and have adopted a Bill that will be to the benefit of all citizens, irrespective of colour.

The committee is expected to meet on Wednesday to vote on the report on the Bill, after which it will be sent to the National Assembly for consideration.

Source: South African Government News Agency