Futuregrowth seeks changes to Sanral law
Asset manager wants protection from potential meddling as it considers trading bonds again
Futuregrowth Asset Management is concerned the South African National Roads Agency (Sanral) is vulnerable to ministerial interference and, following months of discussions with the agency, has requested that the Sanral Act be changed. The asset manager announced on Wednesday that it would reconsider trading Sanral’s debt instruments after an almost year-long freeze. But much still hinges on how the transport ministry responds to its requests to buttress governance at board level. "The Sanral act says the minister will appoint the CEO," said Futuregrowth chief investment officer Andrew Canter. "That’s very unusual. Universally, boards of companies appoint CEs, even if the minister must approve it. "But how are we going to make a 30-year loan to build roads when we could see an entirely new minister of transport who wants to control procurement and replaces the chairman, the board and the CEO in one shot? Think about that," he said. While most state-owned enterprises allow for the mini...
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