DA calls on Parliament to hold urgent discussions on Land Bank’s future
21 April 2020
The Democratic Alliance (DA) will write to the Chairperson of the Agricultural, Land Reform and Rural Development portfolio committee, Mr Zwelivelile Mandela, to urge him to schedule an urgent meeting to discuss the future of the Land Bank. Reports on Monday indicated that the Land Bank was on the verge of defaulting on its debt.
The entity’s woes have been brought on by the fact that for years Government has been slow in its response to various droughts and other agricultural disasters. This resulted in the Land Bank being unable to maintain a low default rate. Impairments and defaulting clients increased which had an inevitable knock-on effect as some of the intermediaries that the Land Bank use to extend their facilities to, were also affected by this problem.
The high vacancy rate, the revolving door of CEOs, as well as the Moody’s downgrade further exacerbated the problems at the entity.
The financial and operational conditions at the Land Bank is a cause for great concern, especially in light of the myriad of challenges farmers are currently facing due to the Covid-19 lockdown. These challenges must be prioritised by Parliament during this time and regular agriculture meetings should be placed on the parliamentary schedule.
It is for this reason that the DA will also write to the Speaker of the National Assembly, Thandi Modise, to request that the Agriculture, Land Reform and Rural Development Portfolio be included in the essential portfolios that meet during this time. It is vital that Parliament performs oversight and prioritises the industry during this lockdown.
The recent drought and outbreak of diseases such as foot and mouth disease (FMD) have placed the South African agricultural sector at massive risk. Agricultural debt is growing and is estimated at R200 billion currently, 25% of the debt book of agriculture is funded directly through the Land Bank.
The Land Bank was established in 1912 with the mandate to support the development of farmers and plays an important role in the agriculture community. It is therefore pertinent that food security and ensuring that farmers can proceed during this Covid-19 disaster period must get immediate attention. The failure of the Land Bank would be disastrous for many farmers.
Issued by Annette Steyn,DA Shadow Minister of Agriculture, Land Reform and Rural Development, 21 April 2020
