President Zuma’s party frowns at the suspension of loan to State Owned Enterprises urging key players to resolve the issues that triggered the suspension in the interest of SA economy.
This follows the decision by Futuregrowth Asset Management to suspend loans to certain State Owned Enterprises.
Futuregrowth highlighted that it’s decision was powered by concerns over the management of the State Owned Enterprises.
Responding, ANC asserted that it’s 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,” stated the party.
ANC further stated that “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.”
“Where there are challenges,” the party went on, they “have been identified and, amongst others, interventions made to strengthen these institutions including the establishment of an Inter-Ministerial Committee (IMC) chaired by Deputy President of the Republic, Comrade Cyril Ramaphosa, to oversee their stability and reform, with specific focus on their governance frameworks.”
Based on the above, ANC asserted that it’s ideal for Futuregrowth and other investors to await the outcome of these interventions before taking any preemptive stance.
“The ANC believes our country’s State Owned Entities are key instruments of our developmental state, playing a critical development role in driving growth and inclusiveness.
“Our commitment to ensuring they are models of good corporate governance, independence and sound technical capacity is not in doubt.
Where necessary, the ANC-led government must not hesitate to comprehensively respond and act on any concerns regarding their governance frameworks and institutional integrity,” added South Africa’s ruling party.
Meanwhile, the Democratic Alliance (DA) commented that Futuregrowth Asset Management’s decision is a clear vote of no confidence in President Zuma.
To DA, the fact that Futuregrowth Asset Management’s decision came after “the absurd Cabinet decision to place the President in charge of overseeing all SOEs,” is a clear indicator that Zuma cannot be trusted.