Transnet says it is preparing legal action against Nedbank, which earlier this week pulled out of mediation talks aimed at resolving a series of contested interest rate swaps that were the subject of extensive testimony before the Zondo state capture inquiry.
Transnet says Nedbank has a case to answer over its role in a series of interest rate swaps arranged by Gupta-aligned Regiments Capital in 2015 and 2016 as part of a plan to fix interest rates on loans for the acquisition of 1 064 locomotives by Transnet. The Zondo Commission heard testimony that the timing of the swaps and the manner in which they were executed appear to have been done to generate fees for Regiments and Nedbank.
Subsequent interest rate movements, which had a negative effect on Transnet cash flows and close-out values, could not have been predicted at the time. To which Transnet replied: “Transnet does not agree with the contents of Nedbank’s statement and is of the view that there is a case for Nedbank to answer to, obliging Transnet to take positive steps to have this matter heard in court. Given the confidentiality constraints attached to the mediation process, Transnet makes no further comment in this regard.
“Legal proceedings will imminently be instituted by Transnet against Nedbank, which will set forth the basis for Transnet’s case.”
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