SOEs: ENOUGH IS ENOUGH

Finweek English Edition - - IN BRIEF -

In Au­gust, Fu­ture­growth As­set Man­age­ment, Africa’s big­gest spe­cial­ist fixed-in­come money man­ager, de­cided to halt any new fund­ing to six of the coun­try’s largest sta­te­owned en­ter­prises (SOEs), cit­ing gov­er­nance con­cerns and re­ports of con­flicts of in­ter­est and pa­tron­age net­works at work at these in­sti­tu­tions. The back­lash was se­vere, with even par­ent com­pany Old Mutual dis­tanc­ing it­self from the move. But Fu­ture­growth should be praised for pub­licly dis­cussing a de­ci­sion oth­ers would only con­fine to the boardroom: some­thing is rot­ten in our SOEs, and in­vestors’ money shouldn’t be put at risk. Fol­low­ing dis­cus­sions with the af­fected SOEs, Fu­ture­growth has since lifted the sus­pen­sion on three of the six in­volved. At the time of writ­ing, sus­pen­sions re­mained in place on Eskom, Transnet and San­ral.

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