The Special Investigation Unit (SIU) has found that Nedbank, which was the first major bank to be temporarily defeated by the Sekunjalo Group in the battle against unfair termination of bank accounts, unlawfully and corruptly participated in a R12 billion Transnet locomotive contract.
The SIU, which recently concluded its own investigation in the matter, also accused Nedbank of unreasonably delaying being held accountable for its role in state capture.
Chief Justice Raymond Zondo’s state capture report implicated the bank in a R12bn club loan scam whereby it, together with Gupta-linked Regiments Capital, engaged in unauthorised interest rate swap transactions that “were not in the best interests of Transnet".
Following the release of Justice Zondo’s report, the SIU conducted further investigations into various allegations contained in the document. The outcome of the SIU probe confirmed Justice Zondo’s finding on Nedbank's interest rate swap transactions.
“The SIU found that the interest swap transactions were concluded without the required authority and not in the best interests of Transnet.
“The SIU has referred evidence to various regulatory bodies and the investigation is concluded, and we are providing support with regard to the referrals that we have made,” the SIU’s chief national investigations officer, Leonard Lekgetho, told the Portfolio Committee on Justice and Correctional Services.
Lekgotho and SIU head Andy Mothibi on Tuesday appeared before the committee to brief MPs about the progress on the unit's investigation of the public and private entities implicated in Justice Zondo’s report.
Also addressing the MPs, Mothibi expressed concern about Nedbank’s non-compliance with the investigation. He took exception to Nedbank asking lots of unreasonable questions, which he interpreted as a delaying tactic by the bank to avoid being held accountable.
Nedbank “categorically” denied that it had “obstructed or delayed” the SIU investigation. It described the SIU’s statements as “regrettable”.
“Nedbank has been co-operating fully with investigations being undertaken by various bodies, including the SIU, to which Nedbank provided evidence between August 2021 and July 2022.
“Despite requests, Nedbank has not seen the report or the conclusions relating to this matter,” said Nedbank in a written response to Independent Media’s questions.
The SIU had been investigating allegations that Transnet used Gupta-linked Regiments as “transactional adviser” for the purchase of 1 064 locomotives to the tune of R12bn for Transnet in order to modernise its fleet of trains.
The bank insisted that it had zero tolerance for corruption.
“Our board and management took comfort from internal and external reviews that Nedbank has at no time acted unlawfully in its dealings with Regiments and the affected counter-parties.
“Nedbank denies that it was complicit in any such unlawful or corrupt conduct that may have been perpetrated by Regiments and others. Nedbank was unaware at the time, and could not have been aware, of the apparent collusive relationships Regiments had forged with senior officials at Transnet,” read the response.
However, the bank was successful in petitioning the Supreme Court of Appeal.
Cape Times