South African banking group Nedbank and state-owned logistics company Transnet have agreed to a confidential commercial settlement, bringing an end to their protracted legal battle over transactions dating back to the state capture period.
According to a joint statement released on Tuesday, the settlement was reached without any admission of liability and is intended to avoid lengthy, costly litigation and protect the long-standing relationship between the two entities. Under the terms of the agreement, Nedbank will pay Transnet R600 million, resolving the dispute in full and final settlement.
The litigation centered on interest rate swap transactions executed in 2015 and 2016, during the height of state capture. These swaps involved agreements to exchange interest rates on existing loans for future payments based on financial derivatives. The Special Investigating Unit (SIU) and Transnet alleged that Nedbank profited by more than R2.7 billion from these deals and sought to recover the funds.
Nedbank consistently denied wrongdoing, asserting that its sales margin was market-related and amounted to less than R43 million, and that there was no evidence of dishonesty, corruption, or collusion by its staff. The bank also filed a counterclaim against Transnet and other parties after mediation efforts collapsed in 2024.
Despite maintaining their respective positions, both parties agreed to settle to move forward.
The statement stated:
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 infrastructure investment and economic growth.
The payment by Nedbank is made without admission of liability and closes one of the most high-profile disputes linked to South Africa’s state capture era.
