Transnet settlement casts shadow over former Nedbank CEO Mike Brown's legacy

FORMER Nedbank chief executive Mike Brown's legacy came under scrutiny this week after the bank agreed to pay Transnet R600 million to settle a long-running dispute over controversial interest-rate swap deals concluded during his tenure.

- PHILIPPA LARKIN

While the confidential settlement ends a costly legal battle, it is likely to deepen reputational concerns surrounding Brown, who presided over the bank at a time when it became entangled in transactions later linked to South Africa's state-capture scandal.

Brown, who over 14 years earned remuneration totalling nearly R477 million, was previously lauded for modernising the bank and maintaining stability in a volatile environment.

But the Transnet case has long cast a shadow over his tenure, with the swap episode as a notable blemish on his record.

Nedbank and Transnet announced the settlement on Tuesday, describing it as being “in the national interest”. The agreement brings an end to litigation launched in 2024 by Transnet and the Special Investigating Unit (SIU), which sought to recover approximately R2.7 billion related to swap transactions arranged in December 2015 and March 2016.