Strong leadership and blended finance are the only solutions to the Land Bank’s financial woes
12 January 2021
The Democratic Alliance (DA) has noted reports of National Treasury and the Minister of Finance, Tito Mboweni’s intention to save the Land Bank from its liquidity challenges with a bailout of R7 billion. We will submit written parliamentary questions to interrogate the validity of such a plan.
Financial liquidity is far from the only trouble the Land Bank is facing. The Auditor-General (AG) of South Africa’s report indicated that the Bank’s leadership has failed to implement effective human resource management to ensure that there are stability and a succession plan for key positions – a problem that has plagued National Treasury and the Land Bank board as well.
For the Land Bank to achieve long term sustainability, it would require far more than a R7 billion bailout. What’s needed is strong and effective leadership that understands banking and agriculture/development finance. Government, as the shareholder, and the Bank’s board are equally liable for the demise of the Bank. There are clear indicators that Minister Mboweni failed to provide proper oversight for this very important strategic agricultural institution.
As such, the DA will submit written parliamentary questions to both Minister Mboweni and the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, to ascertain the following: