Transnet and the Special Investigating Unit said that will be starting court proceedings against Nedbank on interest rate swap transactions. Picture: Supplied
The state logistics company Transnet and the Special Investigating Unit (SIU) will be launching court proceedings to set aside interest rate swap transactions against Nedbank.
This is according to a joint statement that was issued by the SIU and Transnet on Friday.
In the statement, Transnet and SIU said that they have jointly approached the Johannesburg High Court to set aside interest rate swap transactions against Nedbank.
The SIU and Transnet said the transactions in question took place in 2015 and 2016 between Transnet and Nedbank, which saw the bank profiting in excess of R2.7 billion or precisely, R2,736,094,704.82. The bank has denied this, saying it profited only about R43 million.
Transnet and the SIU said that they will also be seeking to recover the amounts that were unduly paid by Transnet to the bank under the transactions.
“The interest rate swap transactions were featured under the report of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector,” Transnet and the SIU said in their statement.
They said the transactions formed part of a greater scheme to misappropriate and divert public funds from Transnet to entities that are linked to the Guptas.
“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 SIU and Transnet said that there is sufficient basis to seek relief and that Nedbank must account for its involvement and conduct in the swap transactions.
In a SENS (Stock Exchange News Service) statement on Friday, Nedbank said taking into account internal and independent external reviews commissioned by them, the Nedbank Board and management remain satisfied that Nedbank internal governance procedures were followed in respect of these swaps and that there is no evidence of any Nedbank staff dishonesty, corruption or collusion.
Nedbank has disputed that they profited in excess of R2.7 billion through the swaps.
“The sales margin earned by Nedbank in respect of the swaps was market related and amounted to less than R43 million,” Nedbank said.
According to Nedbank, the swaps commercially sound and the return on equity earned by the bank was fair, reasonable and appropriate at 15.5% over the life of the transactions.
The bank said that they will strongly defend the litigation against it and will pursue its counterclaims against Transnet and others.
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