Nicola Mawson
The auditor-general (AG) has raised concerns over Transnets financial health after the state-owned logistics operator reported a loss that widened from R5.1 billion last year to R7.3bn in the year to March, a decline that it said yesterday was because the high court had ruled that it must pay Total SA and Sasol about R6bn after the petroleum companies accused it of breaching a 1991 pricing contract.
Transnet, which has made a R9.3bn provision for the estimated claim, interest and legal fees, is appealing the ruling on various grounds.
In addition to the appeal in the matter with Total SA and Sasol, Transnet and the Special Investigating Unit (SIU) have jointly taken Nedbank to the Gauteng High Court, Johannesburg, to set aside interest rate swop transactions, which took place in 2015 and 2016 between Transnet and Nedbank and resulted in profit for Nedbank, according to the directors report in the financials.
Transnet and the SIU also seek to recover the amounts that were allegedly unduly paid by Transnet to Nedbank under the transactions.
