Futuregrowth Asset Management, South Africa’s largest specialist fixed-income money manager, warned that governance lapses at Umgeni Water, including a decision to fire its board, could jeopardize the state-owned utility’s ability to raise financing. Futuregrowth, which is owned by Old Mutual Plc, has raised those concerns with Umgeni Water and the Department of Water Affairs and Sanitation, and its lawyers have written to Water and Sanitation Minister Nomvula Mokonyane, Andrew Canter, Futuregrowth’s chief investment officer, said by email. Still, he disputed a newspaper’s earlier report that was based on a leaked copy of the letter. "At no time, in writing, verbally or in meetings did we threaten to withdraw funding from Umgeni," Canter said. "That said, we did not hide our displeasure with the current situation. We called for corrective actions and we highlighted that their credit ratings might be at risk, their bonds could be suspended from the Johannesburg exchange and that acce...

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