Junk status: Land Bank latest casualty of ANC governance failures
22 January 2020
The Democratic Alliance (DA) is not surprised by Moody’s decision to downgrade the Land Bank’s long-term issuer ratings to Ba1a, making it the first big State-Owned Enterprise (SOE) in South Africa to be relegated to junk status by the New York-based rating agency. Instead of being a vehicle for existing and emerging farmers to get the support that they need to ensure sustainability, the Land Bank has just become the latest casualty in the ANC’s continuous governance failures at critical SOEs.
The Land Bank’s downgrade should send a strong message to the ANC Government, that if we do not make difficult choices in the interest of the people and the economy, we will not fix the economy.
During his State of the Nation Address on 20 June 2019, President Cyril Ramaphosa stated that Government allocated R3.9 billion to the Land Bank in the 2019-20 medium-term budget. In the interest of accountability, the DA submitted a Parliamentary Question to the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, to ask how this funding would be budgeted; whether the funding would be allocated for land reform projects and farms; and whether performance measures are in place to monitor the implementation and success of each programme that receives a budget allocation.
The Minister is yet to respond to these pertinent questions and in light of this catastrophic downgrade to junk, we need urgent updates on whether any of the R3.9 billion was in fact injected into the Bank and whether it has been properly spent on the designated programmes.