The Zondo Commission Report said the Acsa interest swap contracts with the banks were procured through the corrupt involvement of Regiments Capital and former Acsa treasurer, Phetolo Ramosebudi. Picture: Courtney Africa / Independent Newspapers
President Cyril Ramaphosa has authorised the Special Investigation Unit (SIU) to investigate alleged maladministration related to the interest rate swap agreements the Airports Company of South Africa (Acsa) had with major local banks as per the findings of the Zondo Commission.
The Zondo Commission recommended in 2022 that the law enforcement agencies should investigate Nedbank and Standard Bank for their alleged role in a corrupt deal involving interest rate swap transactions concluded with Acsa between 2009 and 2011, which involved Regiments Capital, a company linked to the Gupta family.
The Zondo Commission Report said the Acsa interest swap contracts with the banks were procured through the corrupt involvement of Regiments Capital and former Acsa treasurer, Phetolo Ramosebudi.
Interest rate swap transactions are typically concluded by large companies, banks and financial institutions to manage interest rate risk. No principal capital amount is exchanged; only the interest payment obligations are made.
Regiments acted as financial adviser to Acsa and other State-Owned Enterprises, and coined massive fees from brokering funding arrangements for government entities.
In August, Acsa confirmed its action to recover approximately R50 million against Nedbank over the interest swap agreements awaited the president’s signing of a proclamation for the SIU.
The SIU investigation will look into improper or unlawful conduct by employees or officials of the Acsa.
“This includes the unlawful appropriation or expenditure of public funds or property; irregular or unapproved transactions, practices, or measures involving state property; intentional or negligent loss of public funds; damage to public assets; and offences outlined in the Prevention and Combating of Corrupt Activities Act, 2004,” said the SIU.
“The investigation also extends to any unlawful or improper conduct by individuals causing or potentially causing significant harm to public interests.
“The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 January 2008 and 22 November 2024, as well as any related activities before 1 January 2008 and after the date of the Proclamation that is pertinent to the matters under investigation or involve the same persons, entities, or contracts.”
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