Law firm advises Transnet to go after Nedbank
The law firm helping to clean up Transnet has advised it to take Nedbank to court if necessary to claim back the R1.5bn it allegedly lost in an ‘irregular’ deal related to the controversial tender to buy 1 064 locomotives.
In its advice, Mncedisi Ndlovu & Sedumedi (MNS) Attorneys charges that Nedbank and Gupta-linked company Regiments ‘apparently colluded’ to ‘defraud’ Transnet.
This is the latest salvo by Transnet, which has already instituted claims against former employees and companies totalling R1.458bn related to the R54.5bn locomotives deal that saw Gupta-linked businesses rake in more than R5bn in kickbacks.
Regiments has already been slapped with a R189m summons and Trillian Capital Partners with one for R146m.
The locomotives deal is one of the transactions at the centre of Transnet’s testimony before the Zondo Commission of Inquiry Into State Capture. In a presentation to Transnet, which City Press says it has obtained, MNS Attorneys has advised it to go to court to cancel and set aside the interest rate swap agreement which Nedbank executed for a nearly R12bn club loan.
Transnet sources reportedly told City Press that the swap deal will cost Transnet an estimated R5bn in additional interest by the time it is paid in 2030. MNS has also advised Transnet to explore every avenue to get out of the interest rate swap deals concluded with Nedbank, and to ‘stop the bleeding’.
It further advised Transnet to seek ‘just and equitable remedy’ from Nedbank, which sources close to the law firm and Transnet claimed would be in the region of R1.5bn.
This amount includes the almost R780m the bank allegedly received from Transnet, flowing from the ‘irrational’ interest rate swap deal. Nedbank, however, has strongly denied receiving the R780m, and maintains that it acted above board in all its dealings with Transnet.
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