2 May 2007
Pretoria: Subsequent to the submission of a preliminary report on the
turnaround strategy and review of the sustainability of the Land Bank, the
Minister for Agriculture and Land Affairs, Ms Lulu Xingwana on the
recommendation of the board of the Land Bank requested senior executives namely
Mr Allan Mukoki the Chief Executive Officer, Mr Xolile Ncame the Chief
Financial Officer, Mr Godfrey Masilela, Acting General Manager: Credit to
resume their duties at the bank.
The Ministry of Agriculture and Land Affairs is engaged with the National
Treasury on a sustainable funding model for the Land Bank. This is in pursuance
of the sustainable business model, supportive of the bank's turnaround strategy
and its mandate.
In March 2007, the Minister, as a shareholder of the Land Bank took active
interest in the bank's turnaround strategy ensuring that it was aligned to the
ongoing government's project of reviewing the operations and current mandates
of the country's development finance institutions to improve delivery in the
agricultural sector.
At the same time the Minister announced that government was extending the
R1,5 billion guarantee and an addition capital injection of R700 million to the
Land Bank. Linked to this financial support was a task team seconded to the
Land Bank to support the turnaround strategy and review the sustainability of
the Land Bank business model. In addition, the task team and an independent
auditor commenced to determine the extent of the financial challenges and the
support government needs to give to the bank.
During this time, the above mentioned executives agreed to step aside to
allow an objective assessment of the state of affairs of the bank to be
conducted.
"We wish to take this opportunity to thank the board members and Mr Nallie
Bosman who played a key role in assisting during this period of review of the
bank's mandate, at the request of the board," the Minister said.
For further information contact:
Godfrey Mdluli
Spokesperson for Minister of Agriculture and Land Affairs
Tel: 012 319 6756
Cell: 079 871 5437
Issued by: Department of Agriculture
2 May 2007
