management of the Land Bank to Cabinet
8 November 2007
The Forensic Audit Report into the financial management of the Land Bank has
been completed and submitted to Cabinet on 7 November 2007 for consideration
and Cabinet has approved and recommended as follows:
* the report be referred to the South African Police Service (SAPS) and the
National Directorate of Public Prosecutions (NDPP) for further
investigation
* Department of Agriculture and the National Treasury co-operate closely in
the process of turning the Bank around
* the Minister for Agriculture and Land Affairs maintains governance
oversight over the Bank in order to stabilise the Bank and to provide guidance
in the restructuring process
* that the Bank takes appropriate action to address any issues emanating
from the report in directing and controlling its operations and business
* that criminal proceedings against all those who were identified as having
personal interest, acted inappropriately and negligently in the forensic report
be instituted
* possible remedies for recovering undue benefits derived by third parties,
as a result of the actions of the Land Bank's management, should be
investigated
* internal disciplinary measures be taken against members who failed to act
within the confines of their duties
* a review of all the loans that have been written off
* a major review of the Land Bank's executive and non-executive management,
including the composition and restructuring of the board, and
* evaluate whether the board had acted with the necessary care required and
fiduciary responsibility, as would be required of a financial institution.
Enquiries:
Godfrey Mdhluli
Media Liaison Officer
Tel: 012 319 6843
Fax: 012 467 4502
Cell: 079 871 5437
Issued by: Ministry of Agriculture and Land Affairs
8 November 2007
