Transnet, SIU to sue Nedbank over bank deals during state capture era

Bank transactions valued at more than R2bn are in the spotlight with Transnet and the Special Investigating Unit (SIU) announcing they have jointly instituted proceedings against Nedbank.

An application to the Johannesburg high court will ask for interest rate swap transactions which took place in 2015 and 2016 between Transnet and Nedbank to be set aside.

Nedbank allegedly "profited in excess of R2,736,094,704.82," Transnet and the SIU said. They are seeking to recover the money.

SIU spokesperson Kaizer Kganyago said the swap transactions were raised during the state capture inquiry and allegedly "formed part of a greater scheme to misappropriate and divert public funds from Transnet to Gupta-linked entities".

He said: "Transnet and the SIU are of the view the interest rate swaps are void and unenforceable under the Public Finance Management Act, alternatively contravene the constitution and are contrary to public policy.

"There is sufficient basis for the sought relief and Nedbank must account for its involvement and conduct in the swap transactions."

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