Futuregrowth freeze 'erroneous and unfortunate': ANC

File: The ANC top brass will also meet with Finance Minister Tito Mboweni over his economic recovery plan.

File: The ANC top brass will also meet with Finance Minister Tito Mboweni over his economic recovery plan.


JOHANNESBURG – The African National Congress (ANC) has criticised Futuregrowth Asset Management&39;s decision to freeze lending to the country’s parastatals as "erroneous and unfortunate&39;.

Futuregrowth announced on Wednesday night that it was ceasing lending to six state-owned enterprises (SOEs), including Eskom, the Land Bank and the Industrial Development Corporation.

“The ANC is concerned by the posture adopted by Futuregrowth. It is our hope that Futuregrowth will engage with the relevant ministries and parastatals to discuss the concerns they have; and together find a solution in the interest of the economy and country,” ANC spokesperson Zizi Kodwa said in a statement.

“The generalisation that corporate governance challenges beset Eskom, Transnet, the South African National Roads Agency Limited, the Land Bank, Industrial Development Corporation and the Development Bank of South Africa is erroneous and unfortunate,” Kodwa said.

Kodwa said there had been interventions to address challenges.

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“Where there are challenges, these have been identified and, among others, interventions made to strengthen these institutions, including the establishment of an inter-ministerial committee chaired by the Deputy President of the Republic, Comrade Cyril Ramaphosa, to oversee their stability and reform, with specific focus on their governance frameworks.

“Accordingly, we believe that Futuregrowth, or other any investor, should await the outcome of these interventions before taking any pre-emptive stance,” added Kodwa.

Meanwhile, the Democratic Alliance said Futuregrowth&39;s decision was a vote of no confidence in President Jacob Zuma.

“The decision by Futuregrowth Asset Management to withhold additional funding to a number of state-owned enterprises, including Eskom and Transnet, is a clear vote of no confidence in President Zuma, coming just weeks after the absurd Cabinet decision to place the President in charge of overseeing all SOEs,” the DA said in a statement.

“South Africa’s SOEs are in a dire state,costing the country billions as government continues to prop them up despite their immense losses. At the root of their mismanagement is large-scale corruption that feeds an ANC patronage network headed up by Zuma,” the DA said.

* Futuregrowth&39;s Chief Investment Officer, Andrew Canter gave clarity in an interview on eNCA - watch the video in the gallery above.