The South African National Roads Agency (Sanral), which faces the prospect of its electronic tolling project being scrapped, has failed to meet many of a key funder’s governance demands after the funder cut off lending to it in 2016. In July 2017, asset manager Futuregrowth said it would resume funding to the roads agency after freezing loans the previous year, citing the agency’s eagerness to address the governance and supply chain concerns, which it believed could be detrimental to investors’ interests. Gauteng Premier David Makhura has mooted plans to scrap e-tolls, which he said were a failure, in favour of a new funding model, a move that has worried funders. But in a report on governance at state-owned companies, drafted three years after Futuregrowth first withdrew funding from the agency, the asset manager noted that Sanral only agreed to meet seven of its 16 governance demands. Two other demands — an appropriate quorum and voting thresholds for boards and subcommittees; and...
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