SA’s Investment And Debt Manager Will No Longer Grant Loans To Government Firms


Futuregrowth Asset Management, a specialist fixed-income money manager has halted the grant of loans to government firms.

This is because the financial institution is not satisfied with the way these firms are being run at the moment.

Futuregrowth Asset Management is concerned with the constant infighting of the government which automatically threatens the dependency of the Finance Ministry.

See Also: Gordhan Pravin Says He Is Ready To Die For SA Than Do This…

The prominent asset manager would prefer to work with state firms with a steady leadership.

The investment firm has now vowed that no financial assistance will be granted to the State firms till there is a proper restructure and restoration of these state-owned firms.

Six of these companies include:

  • Power utility Eskom Holdings SOC Ltd.,
  • Rail and Ports Operator Transnet SOC Ltd.,
  • South African National Roads Agency SOC Ltd.,
  • The Land Bank of South Africa,
  • The Industrial Development Corp. of South Africa and
  • The Development Bank of Southern Africa.

Andrew Canter, Chief Investment Officer said:

“We’ve observed recent reports that strongly hint of conflict between branches of South Africa’s government, the possible machinations of patronage networks and a seeming challenge to the National Treasury’s independence.

“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.

“It is difficult to make reasoned and defensible decisions to continue providing state-owned companies with additional funding using clients’ money.” 

See Also: Jacob Zuma Unlikely To Refund Complete Bill Of Nkandla Home

The decision with the investment and debt management firm coincides with the national drama involving the government and the Finance Minister, Gordhan Pravin.

According to Bloomberg, the clash is jeopardizing the nation’s partnership with the reputable firm. Futuregrowth Asset Management is worth 170 billion rand ($11.7 billion) in assets.

On Tuesday, the Chief Investment Officer, Andrew Canter, says the asset management firm is suspending plans to loan out the sum of 1.8 billion rand to 3 state companies.