Thu Oct 20 23:23:42 SAST 2016

State races to Land Bank's aid

By unknown | Mar 29, 2007 | COMMENTS [ 0 ]

Robert Laing

The government has stepped in to save its beleaguered Land Bank with a capital guarantee of R1,5billion and an injection of R700million.

It has also seconded a team of officials to manage the bank, government's news service BuaNews reported yesterday.

Land Bank chief executive officer Alan Mukoki, along with two other senior officials, have been put on indefinite leave reported Fin24.

Land Affairs Minister Lulu Xingwana's spokesman Godfrey Mdhluli, however, could not confirm this.

Xingwana told BuaNews she had temporarily transferred a team to the bank to strengthen its board and management capacity in implementing the turn-around strategy.

She said the bank's board had welcomed the support.

Investors in Land Bank debentures, including pension funds, have been calling for the institution to finalise its financial statements to allay investor concerns that it was insolvent.

Xingwana said the bank's refinancing and management shuffle comes after last year's departmental lekgotla to review progress on priority programmes on both land affairs and agriculture.

The bank's mandate is to assist government meet its target of redistribution of 30percent of agricultural land to black people by 2014.

But it has strayed into controversial areas such as financing Pamodzi's R800million buyout of Foodcorp two years ago.


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