Nedbank sued over state capture transactions

Transnet and the Special Investigating Unit (SIU) have jointly instituted proceedings against Nedbank to reverse interest rate swap agreements made during the state capture era.

In a media statement released on Friday, 26 July, Transnet and the SIU announced that it had approached the Johannesburg High Court to set aside interest rate swap transactions.

These transactions took place in 2015 and 2016 between Transnet and Nedbank, under which Nedbank profited in excess of R2.74 billion.

Transnet and the SIU also seek to recover the amounts that Transnet unduly paid to Nedbank under the transactions.

The interest rate swap transactions featured in the report of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption, and Fraud in the Public Sector formed part of a larger scheme to misappropriate and divert public funds from Transnet to Gupta-linked entities.

“Transnet and the SIU are of the view that the interest rate swaps are void and unenforceable under the Public Finance Management Act, alternatively contravene section 217 of the Constitution and are contrary to public policy,” the statement said.

“There is sufficient basis for the sought relief, and Nedbank must account for its involvement and conduct in the swap transactions.”

“Transnet and the SIU collaborated closely in preparation of the court proceedings, and this included SIU’s uncovering of evidence critical to the case.”

Nedbank has previously denied that it was not, and could not have been, aware of the Regiments Group’s apparent collusive relationships with senior officials at Transnet or its links with the Guptas.

It said it would defend itself vigorously, as it had not been provided with “any evidence of collusion or corruption on the part of Nedbank or its staff” despite requesting disclosure from Transet.