Release of Land Bank financials welcomed, but more transparency is needed
20 January 2021
The Democratic Alliance (DA) welcomes the Land Bank’s release of an interim financial statement and its debt restructuring process with investors as transparency regarding its financial troubles is the only way to address its fiscal decline.
The Land Bank has been plagued with financial troubles for a number of years, directly impacting especially emerging farmers who have no other avenue to turn to for financing.
Without strong leadership at the Bank and a political will, the troubles at the Land Bank threatens to destabilise the whole agriculture industry. While a R7 billion bailout were recently announced, this will only bring temporary relief if the Bank does not employ other creative solutions like a blended model. Bailouts to State-owned enterprises (SOEs) does not teach financial responsibility and is both unsustainable and extremely irresponsible and will never be supported by the DA.