MEDIA STATEMENT
Johannesburg, Tuesday, 26 November 2024 - Public Interest SA welcomes the decisive step by President Cyril Ramaphosa to authorise the Special Investigating Unit (SIU) to investigate Nedbank, Standard Bank, and other implicated parties over controversial transactions structured for the Airports Company South Africa (ACSA) and Transnet. The investigation follows significant delays, with the Department of Justice taking over a year to process the SIU’s request for a presidential proclamation.
These transactions, which involve interest rate swap agreements structured on the advice of Regiments Capital—a firm tied to the Gupta family—are alleged to have been tainted by corruption. Both Nedbank and Standard Bank were implicated in former Chief Justice Raymond Zondo’s report on state capture for their roles in arranging these deals. While lucrative for the banks and Regiments Capital, ACSA has long disputed the transactions, which allegedly resulted in significant financial harm to the state-owned entity.
Public Interest SA commends the SIU for its vigilance in ensuring accountability in these matters. The investigation will address improper or unlawful conduct by employees or officials at ACSA and other implicated entities. This includes:
- The unlawful appropriation or expenditure of public funds;
- Irregular or unapproved transactions;
- Intentional or negligent losses of public funds or damage to public assets;
- Violations of the Prevention and Combating of Corrupt Activities Act.
The proclamation, published on 22 November 2024, underscores the SIU’s mandate to investigate corruption, pursue civil litigation, and recover public losses. Public Interest SA is particularly encouraged by the inclusion of offences causing harm to public interests.
However, we are deeply concerned that the National Prosecuting Authority (NPA) has yet to focus its attention on individuals employed by the implicated banks. It is disconcerting that while former Transnet executives are already appearing before the courts on related matters, those in the private sector who facilitated or benefited from these questionable transactions appear to be beyond the reach of prosecutorial scrutiny. We urge the NPA to broaden its scope and ensure that justice is applied equally, regardless of whether the culprits reside in public or private institutions.
We acknowledge the cooperative stance expressed by both Nedbank and Standard Bank, who have committed to working with authorities. However, we stress the importance of transparency and full accountability in resolving these issues, which have eroded public trust in key financial and state institutions.
The interest rate swap transactions structured by these banks represent a troubling chapter in South Africa’s battle against state capture. Public Interest SA reiterates its call for a robust legal process to hold all parties accountable and recover any financial losses to the state.
We urge the SIU to expedite its investigation and commend its unwavering commitment to pursuing justice. Public Interest SA remains steadfast in advocating for ethical corporate governance and the protection of public funds.
ENDS
For further inquiries:
Tebogo Khaas
Chairperson, Public Interest SA