The Industrial Development Corporation (IDC) has given in
to pressure to publicly disclose politically connected people it gives
loans to so it can secure funding from Futuregrowth Asset Management,
which cut off cash to the development finance institution in August.
The IDC would publish the quantum and performance of all deals concluded with these people in its annual report and website, Futuregrowth said on Monday. It gave no further details.
IDC spokesman Mandla Mpangase said it was the first time the institution would be reporting on lending to politically exposed persons (PEPs).
"We are in the process of structuring a report as requested by the board," he said. "However, in terms of transaction approval, a robust process is followed in line with the IDC PEP policy."
Futuregrowth, a subsidiary of Old Mutual financial services group, had raised concern about the IDC’s governance and lending practices after Cabinet decided to establish a co-ordinating council for state-owned companies overseen by President Jacob Zuma.
Futuregrowth also raised concern about contracts awarded to PEPs at parastatals and froze funding to six state-owned companies. It has now lifted the funding ban on the IDC and the Land Bank.
The IDC would publish the quantum and performance of all deals concluded with these people in its annual report and website, Futuregrowth said on Monday. It gave no further details.
IDC spokesman Mandla Mpangase said it was the first time the institution would be reporting on lending to politically exposed persons (PEPs).
"We are in the process of structuring a report as requested by the board," he said. "However, in terms of transaction approval, a robust process is followed in line with the IDC PEP policy."
Futuregrowth, a subsidiary of Old Mutual financial services group, had raised concern about the IDC’s governance and lending practices after Cabinet decided to establish a co-ordinating council for state-owned companies overseen by President Jacob Zuma.
Futuregrowth also raised concern about contracts awarded to PEPs at parastatals and froze funding to six state-owned companies. It has now lifted the funding ban on the IDC and the Land Bank.
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