Steinhoff irregularities to affect clothing, textile sector: Cosatu

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Congress of SA Trade Unions (Cosatu) says the magnitude caused by the biggest corporate scandal involving Steinhoff International will have a serious impact on the clothing and textile workers in South Africa.

This comes as more than $13 billion  were wiped off when shares lost over 80% of its value. Cosatu says some of the companies affected, include Woolworths and Mr Price.

The significant drop in Steinhoff shares follows claims of dodgy accounting that is being investigated by German authorities. This has also put the Government Employees Pension Fund at stake.

Cosatu Secretary General Bheki Ntshalinsthali says, “There are many others who are going to be affected, it’s just frightening to us. I mean our union our affiliate the clothing and textile workers union has indicated that there are number of factories which they organised which are part of this group which are being affected. They have organized a meeting with Steinhoff as soon as possible to be able so that we can be able to assess and understand what has happened to be able to determine what needed to be done.”

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