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'Nedbank chose not to see any wrongdoing. There were red flags from the start'

9 February 2021 8:54 AM
Tags:
ANC
State Capture
Corruption
Nedbank
The Money Show
Bruce Whitfield
Daily Maverick
Sam Sole
amaBhungane
amaBhungane Centre for Investigative Journalism
Regiments Capital
SUSAN COMRIE
gupta-linked

For 7 years, Nedbank reaped huge profits from its shady relationship with Gupta-linked Regiments Capital, says Susan Comrie.

Nedbank incentivised tarnished financial services company Regiments Capital to flog its products to public sector clients that Regiments was compelled to advise impartially, investigations by Susan Comrie and Sam Sole (amaBhungane Centre for Investigative Journalism) show.

Nedbank and Regiments Capital made hundreds of millions of rands in this way, said Comrie.


RELATED: State Capture: The case against Nedbank by Susan Comrie and Sam Sole for amaBhungane – Daily Maverick


The Money Show’s Bruce Whitfield interviewed Comrie.

Most people in South Africa associate Regiments Capital with the plunder of Transnet to the benefit of the Guptas.

However, said Comrie, “before it was Regiments and the Guptas, it was Regiments and the ANC”.

Nedbank chose not to see, says Susan Comrie of the amaBhungane Centre for Investigative Journalism. © wernerimages/123rf

Nedbank sent a letter to Whitfield saying they are not yet ready to talk, but they did give a statement saying they cannot be held accountable for misdeeds by Regiments Capital.

The bank stopped talking to amaBhungane after 2018.

Most people think of Regiments Capital as a fund that took a lot of money out of Transnet in partnership with McKinsey and then passed that on to Gupta-linked companies… But before it was Regiments and the Guptas, it was Regiments and the ANC…

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

We see it over and over… Nedbank is the bank chosen for municipal deals and state-owned entities. And Regiments collects a massive fee in the process.

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

Regiments acted as advisors to state-owned entities and municipalities. They had a duty to serve the interest of the client… Nedbank took a fee… but clients were often unaware [about the fee, despite funding it] … In some instances, Regiments would take a fee from the client and from Nedbank…

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

It’s the essence of wilful blindness [on the part of Nedbank] … They chose not to see… There were red flags in the very first transaction… By 2012, we had published articles… spooking Nedbank. They considered terminating the relationship, but for whatever reason, they carried on…

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

Listen to the interview in the audio below.




9 February 2021 8:54 AM
Tags:
ANC
State Capture
Corruption
Nedbank
The Money Show
Bruce Whitfield
Daily Maverick
Sam Sole
amaBhungane
amaBhungane Centre for Investigative Journalism
Regiments Capital
SUSAN COMRIE
gupta-linked

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