Nedbank has denied any wrongdoing in the wake of the first part of the Zondo commission’s report into state capture, which noted the "disturbing feature" of its involvement in transactions at the Airports Company SA (Acsa).
In the first part of a report into how state-owned companies such as Acsa were allegedly looted by politically connected individuals, the Zondo commission has called for further investigation into the bank’s dealings with the state-owned airport operator.
Nedbank said it would fully co-operate in any investigation and remained committed to the highest standards of corporate governance. The bank says it fully supports the work of the Zondo commission in its aim to expose corruption, fraud and state capture in SA.
"We remain of the view … that there has been no wrongdoing on the part of Nedbank in relation to these transactions," the bank said in response to Business Day’s questions.
The commission is questioning Nedbank’s role regarding interest rate swap products worth R3.5bn bought by Acsa, which followed advice given by Regiments Capital on its funding structure in 2008.
Regiments is a company with ties to the Gupta family and has been placed at the centre of the corruption that grew to define Jacob Zuma’s time as president.
The contracts — typically struck when a company with variable interest rates wants a predictable loan payment and swaps its floating rate for a fixed rate — carry a standard fee. But Regiments arranged to extract an additional R50m in fees at the expense of the airport operator, the report reads.
The commission report shows that Regiments was incentivised to increase the margin payable by Acsa, and the bank would pay Regiments’ fees upfront and recover these "fees" from Acsa over the life of the transaction.
This arrangement was reflected in communication between Nedbank’s dealers Mario Visnenza and Moss Brickman with Eric Wood of Regiments Capital.
One of the emails from Visnenza to Wood reads: "We leave it to you to include a margin for us to share on the usual 50/50 agreement."
The report found no evidence that Nedbank informed Acsa that Regiments was being incentivised to increase the margin payable by Acsa to the bank.
"It appears that Nedbank were happy to rely on the say-so of Wood of Regiments Capital and did not seek confirmation from anyone at Acsa," the report reads.
Zondo said the commission had intended to tackle these issues with Nedbank in evidence at the hearings before it ran out of time.
"Nedbank’s version in relation to these transactions has not been heard, and this matter requires further investigation by the appropriate authorities."
Zondo said in the report: "On its face, the arrangement between Visnenza and Brickman on the one hand, and Wood on the other, would appear to contravene section 6(b)(ii) of the Prevention and Combating of Corrupt Activities Act …"
Nedbank said it had received the first part of the report and the bank is conducting a comprehensive review of its findings and recommendations.
"Based on our initial review, no adverse findings have been made against Nedbank in terms of the first part of the report.
"We further take note of the concerns expressed by the Zondo commission relating to certain transactions Nedbank concluded with Acsa between 2009 and 2011, as then advised by Regiments Capital."
However, the bank vowed to "fully co-operate with any further investigation undertaken by the appropriate authorities".
Dudu Myeni
Phetolo Ramosebudi was Acsa’s treasurer between 2007 and 2011, and according to the report he developed a corrupt relationship with Regiments during his tenure.
He left Acsa to become treasurer at SAA from January 2012 to February 2015 — about the same time that alleged corruption was at its peak at the carrier under the leadership of Dudu Myeni, against whom the report also makes negative findings.
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