Nedbank 'had to bite the bullet' in its R600m settlement with Transnet

Nedbank Group says it needed to pay the R600-billion settlement to state-owned entity Transnet, as the financial services institution wants to play a big role in the rebuilding of the country's transport and logistics sector.

- By Mpho Sibanyoni

Nedbank Group says its settlement with Transnet will allow it to continue lending in the transport and logistic sector. / x

The explanation, which gives deeper insight into how the lender arrived at the decision, was provided by Nedbank Group's chief operating officer, Mfundo Nkuhlu, after the financial services firm announced its annual financial results this week.

Previously, Nedbank and Transnet had stated that the commercial settlement of their ongoing litigation was made without admission of liability and in the interests of avoiding lengthy and costly litigation and damage to their ongoing relationship.

Nkuhlu told Sunday World it would allow Nedbank an opportunity to continue lending in the transport and logistics sector, which is largely driven by Transnet.

"Our view is that if we look at the rotation risk associated with an overhang of this matter, the time and effort for management, the board and lawyers to seek to resolve this.