Transnet paid additional R300m to Nedbank to service debt: Acting CEO

SABC News Mohammed Mohamedy - Transnet paid additional R300m to Nedbank to service debt: Acting CEO

Acting Transnet CEO, Mohammed Mohamedy, has told the Zondo commission of how an interest rate swap with Nedbank meant that the parastatal would pay an additional R300 million a year to services it’s debt.

The interest rate swap was facilitated by a Gupta-linked company, Regiment Capital. This was despite a senior official advising against move.

According to Mohamedy, Regiment Capital was paid over R220 million for work that could have been done internally. Mohomedy says the Gupta-linked company wrongfully acted as an intermediary between Transnet and Nedbank.

He further told the commission that the decision by Ramasebudi benefited Regiment Capital.

The commission continues.

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