‘Futuregrowth decision a vote of no confidence in Zuma’
The DA says the asset management firm's decision to suspend loans to SOEs is a vote of no confidence in President Zuma.
|||Cape Town – A decision by Futuregrowth Asset Management to suspend lending to South Africa’s state-owned companies was a vote of no confidence in President Jacob Zuma, the Democratic Alliance (DA) said on Thursday.
Responding to the decision by the investment company, which funds Eskom, Transnet, SA National Roads Agency Limited, Landbank, Industrial Development Corporation and Development Bank SA, DA leader Mmusi Maimane said the fact that Futuregrowth cited conflict between branches of government and “a seeming challenge to the independence of the National Treasury” was cause for concern.
“This is a clear swipe at Zuma and his project of state capture, with Futuregrowth indicating that they would only reconsider funding the SOEs once ‘proper oversight and governance’ have been restored at the companies,” said Maimane 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 largescale corruption that feeds an ANC patronage network headed up by Zuma.”
The African National Congress also released a statement, saying Futuregrowth’s decision and reasoning was perhaps premature.
“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,” the ruling party said.
“The generalization that corporate governance challenges beset Eskom, Transnet, South African National Roads Agency Limited (SANRAL), the Land Bank, Industrial Development Corporation (IDC) and the Development Bank of South Africa (DBSA) is erroneous and unfortunate.”
The ANC was quick to point out that problems at the parastatals were being addressed through interventions like the establishment of an inter-ministerial committee chaired by deputy president Cyril Ramaphosa.
“Accordingly, we believe that Futuregrowth, or any other investor, should await the outcome of these interventions before taking any preemptive stance.”
In a statement issued this week, Futuregrowth said it had suspended negotiations on over R1.8 billion worth of debt finance to three parastatals.
African News Agency