Futuregrowth SOE report gives grisly details of ‘governance degradation’
Old Mutual subsidiary Futuregrowth, which brought the problems at Eskom, Transnet and other large state-owned enterprises (SOEs) to light in August 2016 by refusing to buy their bonds, released a detailed criticism of their poor governance on Wednesday. "The simple fact is that every wasted or stolen rand is a rand which cannot build a road, buy a locomotive, electrify a house, or educate a child," Futuregrowth chief investment officer Andrew Canter said in the introduction to the report titled SOE Governance Unmasked: A Learning Journey. "It is untenable for investors to allow the nation’s savings to be absconded, and it is incumbent on all responsible investors to play their appropriate role in allocating capital to sustainable enterprises." Futuregrowth said the report summarises the problems it had found at SA’s six-largest SOEs so far. Its aim is to move from what started as a "creeping sense of governance degradation" to defining what good governance at these organisations sho...
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