Steinhoff International has reported its former CEO Markus Jooste – who resigned last December as revelations of an accounting scandal engulfed the company –  to an elite South African police unit over alleged corruption.

The news of the referral was delivered by Steinhoff’s acting chairperson Heather Sonn to a parliamentary committee hearing in South Africa yesterday and follows revelations about accounting regularities at the global retail business, which has seen more than $10 billion wiped off its market value in recent months.

“Based on our investigations to date, we have reported the former CEO Markus Jooste to the Hawks … The matter is now in the hands of the Hawks for investigation and prosecution,” Sonn told the committee, according to Reuters.

The inclusion of African law enforcement is a step-up in the ongoing fall-out over the scandal, which has seen a score of executives resign since December.

The company has said that it is trying to address community, legislator and shareholder concerns, having brought on advisers to help it deal with its issues.

In recent weeks, Steinhoff said it had received support from financial creditors to help it maintain stability.

“While the company is confident that it will receive sufficient support from its relevant finance providers to obtain these limited waivers, there can be no assurance that the company will be able to reach agreement with its finance providers on acceptable terms or at all.”

Subsidiary company, Steinhoff Asia Pacific – which operates a number of high performing retail brands in Australia and New Zealand including Freedom, Fantastic Furniture, Best & Less, Snooze, Harris Scarfe, Plush, OMF, Postie and Bay Leather Republic – says it is financially strong but that it has appointed Minter Ellison and Ferrier Hodgson to provide legal, financial and corporate advice.

The owner of brands including Fantastic Furniture has hired financial advisers specialising in helping distressed companies, but says it remains profitable despite problems at its parent company.

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