Headless Umgeni Water worries large investor
Futuregrowth notes company must have a fully functioning board and transparent selection
Asset manager Futuregrowth has raised the alarm over governance at Umgeni Water, which has been left without a permanent CEO or a board after Water Affairs Minister Nomvula Mokonyane dissolved it at the end of June. Umgeni Water is the largest supplier of water services in KwaZulu-Natal, with R1.5bn in listed bonds in issue. On Tuesday, it issued a Sens notice in which it gave a governance update, warning that it could be without a board for up to six months. In the interim, all major decisions including procurement were in the hands of acting CEO Thami Hlongwa and must be taken "in conjunction" with Mokonyane. Futuregrowth chief investment officer Andrew Canter said it had been engaging with the management for the past 10 months on governance matters. "We noted that the board was dismissed on 30 June. We communicated our concern [over the dismissal] and the acting CE. We urged Umgeni to communicate this matter to investors, which they did via Sens on Tuesday," Canter said.
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