Transnet and the SIU have filed a legal case against Nedbank to cancel interest rate swaps from the state capture era, where they claim the bank raked in billions.
The Special Investigating Unit and Transnet announced on 26 July that they jointly instituted legal proceedings against Nedbank to set aside interest rate swap transactions that occurred at the height of state capture.
The SIU and Transnet allege that Nedbank profited in excess of R2.7 billion, and they are seeking to recover the amounts that they claim “were unduly paid by Transnet to Nedbank under the transactions.”While Nedbank was not directly implicated by the commission’s findings, it was recommended that Nedbank’s participation in certain deals be investigated further.
“The interest rate swap transactions featured under the report of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector and formed part of a greater scheme to misappropriate and divert public funds from Transnet to Guptalinked entities,” the entities said in a statement.
Transnet and the SIU believe “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.”
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