South Africa\u2019s largest private fixed-income money manager, Futuregrowth, has again threatened to cut lending to a state company – this time to Umgeni Water, the City Press reports.<\/p>\n
The lender, which is part of Old Mutual, reportedly sent a letter to water and sanitation minister Nomvula Mokonyane in the past few weeks, accusing her of destabilising the water board, and threatened to withdraw bonds it had with it.<\/p>\n
The company accused Mokonyane of misleading the public on changes to the group’s board, after making several illegal appointments.<\/p>\n
Speaking to the City Press, officials at the water board said Futuregrowth’s message was clear – that Mokonyane needs to get back on track, or it would take its money and leave. The minister did not comment on the story.<\/p>\n
The Umgeni has reportedly raised over R3 billion in bonds – if withdrawn, that would put Treasury in the position of having to find another multi-billion-rand bailout.<\/p>\n
Futuregrowth made headlines in 2016 after announcing a funding freeze to several SOEs<\/a><\/strong>, until it was satisfied and comfortable with the direction they were heading.<\/p>\n The decision came on the back of an announcement by the government that president Jacob Zuma would lead a panel to oversee all state-owned companies to ensure they help develop the country \u2013 a role previously delegated to the finance minister and other departments.<\/p>\n Following Futuregrowth’s call, the rand took a hit, which the company apologised for<\/a><\/strong>, but stood by its decision. The freeze was later lifted, following consultation with government.<\/p>\n