Statement: Transnet SOC Limited dispute regarding interest rate swap transactions
Published - 26 July 2024
Review proceedings have been served on Nedbank by Transnet SOC Limited and the Special Investigating Unit (‘SIU’) in respect of interest rate swap transactions entered into between Transnet and Nedbank between December 2015 and March 2016 (‘swaps’). Nedbank will strongly defend the litigation against it and will pursue its counterclaims against Transnet and others.
To date, no evidence has been found, or presented to Nedbank, of any Nedbank staff dishonesty, corruption or collusion. Nedbank stands by its previous statement on the matter Termination of Nedbank/Transnet mediation. To the extent that there was corruption this was on the part of the Regiments Group and Transnet’s staff members and not Nedbank. Nedbank will not be held liable for any governance failures at Transnet.
Considering 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.
The joint media statement by Transnet and the SIU of 26 July 2024 which states that Nedbank profited in excess of R2,736,094,704.82 in respect of the swaps is incorrect. The sales margin earned by Nedbank in respect of the swaps was market related and amounted to less than R43million. The swaps were commercially sound and the return on equity earned by Nedbank was fair, reasonable and appropriate at 15,5% over the life of the transactions.
As the matter is now pending before the courts, Nedbank is not able to comment further.
