DBSA CEO Patrick Dlamini
Photo by: Duane Daws
The Development Bank of Southern Africa (DBSA) has become the third public entity to confirm that Futuregrowth Asset Management has lifted a lending suspension imposed on it and five other State-owned companies (SoCs) earlier in the year.
On August 31, Futuregrowth announced that, owing to governance concerns, it had frozen all new lending to the DBSA Eskom, the Industrial Development Corporation (IDC), the Land Bank, the South African National Roads Agency and Transnet.
The suspensions were lifted on the Land Bank and the IDC on September 26 and November 7 respectively.
The DBSA said the suspension had been lifted with immediate effect, following the conclusion of a “rigorous” due diligence process, during which Futuregrowth reviewed its governance structures, processes and independence. The ending of the suspension was subject to agreed improvements and additional reporting.
“Following the suspension announcement two months ago, we have been proactively engaging with Futuregrowth to understand and address their concerns. We are pleased that our relationship has been restored and strengthened,” CEO Patrick Dlamini said in a statement.
The DBSA, he added, looked forward to working more closely with Futuregrowth and other asset managers in the development of infrastructure in South Africa and the continent at large.
“We have committed to increasing reporting on board and investment activities as well as implementing additional governance structures that Futuregrowth has recommended. We believe that these enhancements can only benefit and strengthen our corporate governance structures,” Dlamini added.