“Any material risk to the state-owned entities’ governance, budgeting and approval processes for spending or lending must impact on our forward-looking credit assessments”.
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“Transnet is available to engage with all its lenders and investors, including Futuregrowth, to address any concerns they may have regarding the company’s business activities”, it said in statement.
On Wednesday, Futuregrowth was the first organisation to pull out of lending.
With somewhere in the region of R170 billion in assets, Futuregrowth Asset Management has put a hold on more than R1.8 billion worth of funding intended for three of South Africa’s parastatals; according to its chief investment officer, Andrew Canter.
Zuma has rebuffed Gordhan’s attempts to replace the board of South African Airways, which is chaired by Dudu Myeni who also heads the president’s charitable foundation, and the minister has refused to grant the loss-making carrier new loan guarantees.
Other than the bank’s concerns over how Eskom is being run, Hejrskov says Jyske’s decision to withdraw was also based on the ongoing debacle between President Jacob Zuma and Finance Minister Pravin Gordhan as well as the influence yielded by the Gupta family, which is greater than what had previously been relayed.
Futuregrowth, Africa’s biggest private fixed-income money manager with about 170 billion rand (about 12 billion USA dollars) of assets, announced its decision on Wednesday to freeze lending to the country’s parastatals due to in-fighting between South Africa’s Treasury and state-owned enterprises.
“Where there are challenges, these have been identified and, amongst others, interventions made to strengthen these institutions”, the party said in a statement.
“We respect the independence that fund managers need to deliver investment performance for clients, and believe that a more constructive model of engagement is needed and necessary to build and increase socioeconomic development and drive financial inclusion in our country”, Mupita said.
It was an unfortunate mistake to suspend loans to State Owned Enterprises, the ruling African National Congress said on Thursday.
He said Futuregrowth’s announcement that it would only proceed with financing SOEs when “proper oversight and governance” have been restored at the companies was “a clear swipe at Zuma and his project of state capture”.
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“Accordingly‚ we believe that Futuregrowth‚ or other any investor‚ should await the outcome of these interventions before taking any preemptive stance‚” he said.
