Transnet and Nedbank have agreed to a confidential commercial settlement regarding their ongoing litigation, the companies announced on Wednesday.
In a joint statement, the ports and rail operator and the bank said the settlement agreement had been reached “without admission of liability and in the interests of avoiding lengthy and costly litigation and damage to their ongoing relationship”.
The litigation between Transnet and Nedbank stemmed from a controversial 2015 interest-rate swap transaction, part of a R12 billion loan package to finance the state-owned ports and rail operator's acquisition of 1 064 locomotives, a deal later mired in state capture allegations.
Advised by Gupta-linked Regiments Capital, the swaps were intended to hedge against interest rate fluctuations but instead locked Transnet into higher costs, reportedly adding R75 million to R100 million monthly in extra expenses.
Transnet accused Nedbank of improper conduct, including potential collusion and benefiting from corrupt facilitation, leading to a protracted Gauteng High Court (Johannesburg) lawsuit in 2021 after failed mediation talks.
Nedbank vehemently denied any wrongdoing, insisting the bank's sales margin was market-related at under R43 million and that it bore no responsibility for Transnet's governance lapses during the era.
The companies said they both stood by their respective previous statements regarding the litigation.
“Transnet and Nedbank have a long-standing relationship, and the settlement of this litigation allows them to continue to develop this important relationship in the national interest and for the furtherance of the infrastructure investment and economic growth,” the companies said.
“In terms of the settlement, Nedbank Group has agreed to pay Transnet an amount of R600 million. Nedbank’s payment to Transnet is made without admission of liability and in full and final settlement of the dispute,” they said.
