In a notable turn of events, the Pretoria Specialised Commercial Crimes Court has handed down a suspended sentence to 79-year-old Gehardus Burger.

This verdict comes in connection with his alleged role in South Africa’s most infamous corporate fraud, the Steinhoff scandal.

Quick Arrest and Sentencing

Burger’s legal troubles escalated quickly when he was arrested on Thursday morning.

He didn’t have to wait long for justice, as he appeared in court later that same day and was sentenced almost immediately.

Guilty Pleas and Legal Consequences

Colonel Katlego Mogale, the spokesperson for the Directorate for Priority Crime Investigation (often referred to as the Hawks), revealed that Burger pleaded guilty to all three counts of violating the Financial Markets Act related to insider trading.

The court decided on a five-year prison sentence, which is suspended for five years, provided Burger stays clear of similar offenses during that time.

In addition, the court ordered that any profits he made from the sale of shares must be forfeited to the State.

Background of the Case

Earlier reports indicated that Burger’s arrest is part of a broader investigation into the Steinhoff affair.

The scandal took root back in November 2017, when the former CEO, the late Markus Jooste, allegedly provided insider information regarding the impending drop in Steinhoff shares.

Specifically, Burger is accused of acting on a tip-off from Jooste, leading him to sell his shares just before their value plummeted due to discrepancies in Steinhoff’s financial statements.

According to the allegations, Burger instructed the sale of over 39,000 Steinhoff shares, fully aware that Jooste’s position as CEO granted him access to confidential information.