The South African cabinet has referred a damning forensic audit on the Land Bank for possible criminal prosecutions.
The cabinet also ordered that criminal proceedings be instituted against all those who were identified in the audit "as having personal interest and acted inappropriately and negligently." The cabinet said a major review was required of the bank's executive and non-executive management, and of the performance of the board, to determine if directors acted with due care and responsibility.
The bank's poor performance is seen as major obstacle to SA's land reform efforts and its attempts to nurture black farmers.
The cabinet tasked the agriculture department and treasury to ensure the bank developed a turnaround strategy by the 20th of the month, and that stability be restored to the institution, which has had a succession of chief executives in the past 10 years.
It was also recommended that internal disciplinary measures be taken against anyone named in the report as having failed to act in terms of their duties. A review of all written-off loans would also need to be undertaken, the cabinet said.The announcement was welcomed by the agricultural community.
The bank has been linked to a scandal in which R800m ($122 million) was loaned for non agricultural investment - against the rules - and questions were raised because ruling party ANC secretary-general Kgalema Motlanthe had shares in the company loaned the money. The money was reportedly used for luxury golf estates, a sugar mill, equestrian estates and residential developments.
Kraai van Niekerk, the Democratic Alliance's agriculture spokesman, said that according to his estimation the bank had write-offs totalling more than R1bn ($152 million) over the past three years, of which R350m were from the 2006-07 financial year alone.allafrica.com
