Public Enterprises Minister Lynne Brown has assured all lenders and investors that Eskom and Transnet are credible and reliable borrowers with strong credit fundamentals as evidenced by their respective credit profiles.

This comes after Futuregrowth Asset Management announced its decision to suspend loans to six state-owned enterprises (SOEs). According to Futuregrowth, this decision is driven by growing concerns about the governance and decision structures of the SOEs and will remain in place pending a review.

According to Brown, the performance of Eskom and Transnet over the past financial year confirms their strong governance structures, including the stable boards of directors and executive committees.

“I, as shareholder representative on behalf of government, have recently concluded Eskom and Transnet’s Annual General Meetings. The boards have fulfilled successfully their performed their fiduciary duties and both companies had unqualified audit reports. This is a critical indicator for any international or national investor to invest in the future of both companies and in South Africa,” said Brown.

“I urge current and potential future investors to directly engage with me and the SOEs about any matter of concern in regard to their investments,” she concluded.