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Transnet appointed Regiments as an adviser, effectively making the transactions “commercially sound” and the bank’s margin was reasonable for the risks assumed, Nedbank said.
Regiments was linked to the Gupta family, whose members are alleged to have leveraged their relationship with former President Jacob Zuma to flout procurement processes and win deals with state-owned companies.
“Nedbank was not and could not have been aware of the apparent collusive relationships that the Regiments group had forged with senior officials at Transnet, or the links that the Regiments group apparently had with the Guptas,” it said.
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The transactions were found to have been potentially corrupt by a commission of inquiry into so-called state capture, which was the undue influence over government officials and entities during Zuma’s tenure. He has denied wrong-doing.
The board and management of Nedbank have said they are satisfied that its internal governance procedures were followed in respect of the transactions and that there is no evidence of any dishonesty, corruption or collusion by its staff.
Nedbank entered the mediation talks to “avoid potentially drawn-out and costly litigation,” and will “strongly defend itself in any litigation proceedings that may follow,” it said. Transnet didn’t immediately respond to queries for comment.
Nedbank shares were up as much as 0.9% in Johannesburg, before paring gains to 0.2% by 3:26 p.m.