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Land Bank dusts off cobwebs with new board to steer it out of financial quagmire

The Land Bank has overhauled its board with new blood to steer it out the financial quagmire that saw it earlier this year declare a constrained financial position, resulting in it defaulting on its debt obligations. Photo: File

The Land Bank has overhauled its board with new blood to steer it out the financial quagmire that saw it earlier this year declare a constrained financial position, resulting in it defaulting on its debt obligations. Photo: File

Published Dec 13, 2021

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THE Land Bank has overhauled its board with new blood to steer it out the financial quagmire that saw it earlier this year declare a constrained financial position, resulting in it defaulting on its debt obligations.

Save for the chief financial officer Khensani Mukhari and long standing board member Mathane Makgatho, the Land Bank has rung the changes at the helm with Nyane Rethabile Nkosi as the new chairperson and Lehlogonolo Andrew Makenete as the deputy chairperson.

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Fresh board members include Dineo Maithufi, Johann Frederick Kirsten, Thulisile Njapa Mashanda, Nonthuthuzelo Pinkie Motshegoa, Egashnee Pillay, Monde Mbovu Tom and Dimitri Wilhem van der Westhuizen.

Mukhari remains the bank’s chief financial officer.

In October the Land Bank said the debt defaults had caused considerable strain on operations and reduced its ability to support the sector and service existing debt.

The bank had geared itself to fully support existing clients with working capital and production facilities in the planting season, with about R11.4 billion being paid to lenders resulting in a 28 percent reduction of the debt since the defaults.

“The capital injection of R7bn is intended to reduce debt and provide a baseline for future growth of the bank. With the support of the shareholder, the Land Bank continues to work with lenders on the liability solution, now on its third iteration, in order to take the bank out of its default position and allow for the resumption of normal business operations as far as possible,” it said at the time.

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