The Special Investigating Unit (SIU) notes the settlement agreement reached between Nedbank and Transnet SOC Limited regarding the interest rate swap transactions. As part of the settlement agreement, Nedbank will pay Transnet R600 million and the SIU and Transnet will withdraw an application in the Gauteng Division of the High Court of South Africa in Johannesburg to review and set aside interest rate swap transactions concluded in 2015 and 2016.

This agreement, supported by the SIU, formally concludes the civil claim phase related to the SIU’s implementation of the investigation of the outcomes and consequent management. The Settlement Agreement makes business sense for Transnet, is in the public interest and most importantly, ensures actual cash recoveries and prevention of future losses to the State.

The SIU investigated the transactions featured in the report of the Judicial Commission of Inquiry into allegations of State Capture, corruption, and fraud in the public sector, as outlined in Proclamation R11 of 2023, as amended by Proclamations R3 of 2020 and R97 of 2022. The transactions were part of a larger scheme designed to misappropriate and divert public funds from Transnet for the benefit of entities linked to the Gupta family.

It is important to note that the settlement between Transnet and Nedbank does not absolve any individual or entity from potential criminal liability, a competence residing exclusively in the domain of the National Prosecuting Authority (NPA).

The SIU is currently investigating similar interest rate swap agreements at another state institution under Proclamation 228 of 2024. This investigation aims to address allegations of maladministration and financial mismanagement in relation to interest rate swap agreements with various banking institutions, as highlighted by the Judicial Commission of Inquiry into State Capture.

Enquiries:
Kaizer Kganyago
Spokesperson: Special Investigating Unit
Tel: 082 306 8888
E-mail: KKganyago@siu.org.za