Lanzerac Wine Estate takes on SARB in R220m forfeiture battle
The luxury wine estate previously owned by late former Steinhoff boss Markus Jooste is challenging the SA Reserve Bank over its forfeiture of millions from the company.
Image: File
Late controversial businessman Markus Jooste’s former luxury Lanzerac Wine Estate in Stellenbosch is contesting the SA Reserve Bank's (SARB) decision to forfeit the R220 million facility.
The SARB’s exchange control regulations were used to order the forfeiture of the property owned by Jooste’s company, formerly Morpheus Property Investments, which he sold to billionaire Christo Wiese.
According to papers filed at the Gauteng High Court, Johannesburg, formerly Morpheus Property Investments has raised constitutional issues over 22D of the Exchange Control Regulations 1961 promulgated under the Currency and Exchanges Act 1933.
In addition, the estate is challenging the doctrine of legality.
“Whether Regulation 22C(2)(b) of the Exchange Control Regulations is unlawful in that it is a regulation as contemplated in section 9(2)(b)(i) of the Currency Act, as it permits the ‘blocking, attachment, and obtaining of interdicts’ over assets yet is not pupled with a time limit as contemplated under section 9(2)(g) of the Currency Act and whether Regulation 22C(2)(b) of the Exchange Control Regulations breaches the doctrine of legality under section 1(c) of the Constitution and thus under section 172(1)(a) of the Constitution, falls to be set aside,” read the court papers filed earlier this month.
Wiese controlled much of Steinhoff, of which Jooste was chief executive officer.
Over a period of about two decades, Steinhoff became the second largest furniture and home goods retailer in the world.
The company was founded in Germany in 1964 by Bruno Steinhoff and he introduced the Steinhoff business to South Africa in 1997 and Steinhoff International listed on the Johannesburg Stock Exchange in 1998.
Steinhoff later further expanded and was listed on the Frankfurt Stock Exchange in Germany in 2015.
At the height of its successes, Steinhoff became a global group with 130 000 employees in approximately 12 000 retail outlets in 30 countries.
Following Steinhoff’s collapse, the chairperson of its audit committee reported transgressions to the authorities in terms of the Prevention and Combatting of Corrupt Practices Act (Precca).
Investigations later revealed damning information of Jooste’s complicity in Steinhoff’s collapse and the matter was reported to the Hawks in terms of Precca on suspicion that he has committed several offences.
At the time of Jooste’s death in March 2024 at the age of 63, the matter was still in the hands of the Hawks for further investigation and prosecution.