POOR GOVERNANCE COSTS

9th September 2016 By: Darlene Creamer

POOR GOVERNANCE COSTS

News that South African fixed-income asset manager Futuregrowth has stopped lending to some State-owned companies highlights the very real risks that lenders are now seeing as a result of governance breakdowns at these firms. Futuregrowth was particularly concerned about developments at Eskom, Transnet, the South African National Roads Agency, the Land Bank, the Industrial Development Corporation and the Development Bank of Southern Africa.