Newsdeck

Newsdeck

Nedbank Ends Talks With South Africa’s Transnet Over Gupta-Linked Deals

Nedbank Ends Talks With South Africa’s Transnet Over Gupta-Linked Deals
The Transnet logo.

Nedbank Group Ltd. has ended a mediation process with South Africa’s port and freight rail operator Transnet SOC Ltd., to resolve a dispute over contested interest-rate swap transactions.

The lender did not advise the rail operator on the transactions in question, which took place in December 2015 and March 2016 based on the advice of Regiments Capital Pty Ltd., Nedbank said in a statement Tuesday.

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.

Read more

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.

Gallery

Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

A South African Hero: You

There’s a 99.7% chance that this isn’t for you. Only 0.3% of our readers have responded to this call for action.

Those 0.3% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.3%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options

MavericKids vol 3

How can a child learn to read if they don't have a book?

81% of South African children aged 10 can't read for meaning. You can help by pre-ordering a copy of MavericKids.

For every copy sold we will donate a copy to Gift of The Givers for children in need of reading support.