Transnet says legal action against Nedbank is imminent over Gupta-linked deals

Nedbank has reduced the minimum income required for people to get its credit cards to R 5000. It wants to grow its credit card market share to 16%.

State-owned rail and ports operator Transnet says legal action against Nedbank is imminent. This is over a long-standing dispute involving interest rate swap transactions entered into with the bank on the advice of Gupta-linked Regiments Capital in a process it appears to believe was tainted by corruption.

Transnet says it is of the view that Nedbank has a case to answer to and that it will take steps to have the matter heard in court, after mediation efforts between the two parties broke down, with no settlement being reached on the disputed transactions. Nedbank announced on Tuesday that it had failed to find common ground on the issue with Transnet, which it said was trying to blame it for failures in its own governance processes.

“Legal proceedings will imminently be instituted by Transnet against Nedbank, which will set forth the basis for Transnet’s case,” Transnet said in a statement issued in the evening after Nedbank first commented on the breakdown of mediation efforts on Tuesday.