Multipurpose Business Solution’s Jonathan Bloom says the decision taken by Transnet officials to do an interest rate swap three days after securing an R12-billion loan from a consortium of banks was not in line with the company’s risk management policy.
He says Transnet concluded a separate agreement with Nedbank to mitigate against the risk of the loan through an interest rate swap which saw Transnet paying interests of the loan at a fixed rate as opposed to a floating rate.
He says this payment arrangement disadvantaged Transnet as it resulted in higher interest rate payments.
Bloom is making a second appearance before the State Capture Inquiry in Parktown, Johannesburg.
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