The Nedbank Group says it’s ended a mediation process aimed at resolving a dispute with parastatal Transnet over interest rate-swap transactions that took place during the state capture era.
The transactions took place in December 2015 and March 2016, based on the advice of Gupta-linked Regiments Capital, according to a Nedbank statement.
This opens up the possibility that the two parties may end up in litigation, reports Garth Theunissen for News24.
Bruce Whitfield asks the business journalist to explain the basics of what is a rather complicated and technical story.
Garth Theunissen:
“Essentially it’s parallel transactions that hedged the movements in the interest rate to ensure the party that Nedbank entered into the transaction with, doesn’t end up out of pocket.”
Theunissen notes that in its statement on Tuesday, Nedbank acknowledge that there has been some cash flow implication for Transnet in this case.
While the Group blame it on interest rates, he says, there is the broader issue of whether there was any sort of collusive arrangement between parties at Regiments Capital, at Nedbank and at Transnet.
Garth Theunissen:
“Everyone is blaming everyone else, with Nedbank saying thev’ve done nothing wrong. As it stands, the talks have broken down and the next step is to see what Transnet does.”
“I hadn’t received anything back from Transnet when I logged off my computer an hour ago, but the next likely step would probably be for Transnet to either refer Nedbank to the SIU (Special Investigating Unit) or take them to court.”
-EWN
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The post Nedbank & Transnet deadlocked over responsibility for Gupta-linked transactions appeared first on News365.co.za.
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