Lending company back in business with IDC

FUTUREGROWTH Asset Management has resumed lending to the Industrial Development Corporation (IDC) after review, both parties said yesterday.

The asset manager, a subsidiary of the Old Mutual group, said it would resume lending to the IDC with immediate effect.

Futuregrowth had satisfied itself that the IDC board’s relationship with the Department of Economic Development, its parent department, was above board.

The IDC’s policy for lending to politically exposed persons (PEPs) had also passed muster.

“As part of the engagement with Futuregrowth, there were some recommendations regarding enhanced transparency and public disclosures relating to governance structures,” IDC chief financial officer Nonkululeko Dlamini said.

Futuregrowth spokesman Michele Usher said the IDC had a mandate to make loans to politically exposed persons, and had “well-developed policies” in place for that, but these remained risky.

“The IDC has taken the decision to disclose the quantum and performance of all deals concluded with [politically exposed persons] in their annual integrated report and on their website,” she said.

The IDC was also in the process of strengthening its directors’ conflicts of interest policy, Usher said.