Xingwana’s spokesperson, Godfrey Mdhluli however could not deny or confirm this latest development.

Weekend newspapers reported that top Land Bank officials had siphoned off more than R2 billion meant for farmers, to fund personal ventures.

Earlier in the week Mdhluli said financial statements showed that the bank's exposure amounted to a billion rand. He added that a new Chief Executive Officer for the bank would be speedily appointed. The Land Bank is also in the process of recruiting appropriately skilled individuals to assist in implementing a turn-around.

In a statement recently the ministry said the forensic audit revealed some ultra vires transactions falling outside of the scope of the bank’s mandate and act.

The South African cabinet resolved this month that a report on a forensic audit conducted by Deloitte & Touché round the financial management activities of the bank be referred to the police and the National Directorate of Public Prosecutions for further investigation and possible prosecution.

Both the police and NPA remained reticent when contacted to check if they have started their investigations.

As per Land Bank’s Annual Financial Statements for the 2006/07 financial year the bank’s exposure to land for development transactions was about R1 billion which the statements disclosed.

These transactions represented active loans for which the value of the security on these transactions was adequate to cover exposure.

Currently a sustainable business model ordered by Parliament is being developed to ensure delivery on government’s mandate and a new funding model that would enhance sustainability and continuity.

Keywords:  south_africa agriculture banking business