South Africa: Siu Joins Transnet in Legal Proceedings Against Nedbank for State Capture-Era Financial Transactions

28 July 2024
Daily Maverick (Johannesburg)
By Ray Mahlaka

The Special Investigating Unit and Transnet believe that interest rate swap transactions, which took place in 2015 and 2016, resulted in Nedbank generating profits in 'excess' of R2.7bn. Transnet and the SIU want these alleged profits to be recovered.

The Special Investigating Unit (SIU) has now supported Transnet in its legal proceedings against Nedbank related to the commercial bank's role in executing financial transactions allegedly tainted by corruption during the State Capture era.

On Friday, 26 July, the SIU and Transnet jointly announced that they had instituted legal proceedings against Nedbank at the Gauteng Division of the High Court in Johannesburg. The proceedings relate to Nedbank's role in carrying out interest rate swap transactions for Transnet -- transactions that were allegedly corrupt and cost the state-owned transport entity billions of rands.

Transnet had already pursued legal action against Nedbank after months of mediation talks between both parties broke down. The talks had been aimed at settling the dispute amicably and avoiding messy litigation. The SIU has now entered the fray, saying Nedbank has a case to answer.

The SIU is a body that investigates allegations of corruption at state organs and entities and has the power to institute legal proceedings to recover losses.

Nedbank has responded to the announcement by Transnet and the SIU, denying any wrongdoing. Nedbank said it will "strongly defend the litigation against it and will pursue its counterclaims against Transnet and others".

"To date, no...

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