DBSA calms Futuregrowth
The state-owned Development Bank of Southern Africa will work towards greater transparency and comply with policy changes
The Development Bank of Southern Africa (DBSA) will work towards greater transparency – including providing more details on its managers’ relationships with politicians – as part of a deal with Futuregrowth Asset Management to resume funding. The DBSA plans to publicly disclose the number, quantum and performance of loans made to private companies where politically exposed persons (PEPs) are involved, as part of a PEP policy it is implementing. Futuregrowth froze R1.8bn in funding to six state-owned entities — the DBSA, Eskom, Transnet, the Land Bank, the Industrial Development Corporation (IDC), Eskom and the South African National Roads Agency (Sanral) in August, citing concerns over governance and loans to PEPs. The asset manager has since lifted its funding freeze on the Land Bank, the DBSA and the IDC, leaving Eskom, Transnet, and Sanral out in the cold. Futuregrowth had found the DBSA had an appropriate board with a healthy relationship with its executive committee, but was ke...
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