Cape Town – Former Stellenbosch University academic Christa van Louw, who headed transformation and diversity, is one of five people being sued by the Land Bank to recover over R142 million in loans and grants.
Van Louw, along with Lambertus Lochner Louw and Nicolaas Jacobus Smith, are jointly being sued in their capacity as trustees of the Intshona Werkers Trust. Others are Goeie Hoop Melkprodusente and Trevor Arthur Van Louw, her husband.
The case stems from financial advances the Land Bank made to the principal debtor, Intshona Milk Products, of which Van Louw was a shareholder.
The Land Bank’s first loan, made on November 22, 2007, amounted to over R13.8m, followed by a second loan - termed a cash credit facility - to the amount of R7.5m on the same date. A further eight loan payments were made by the Land Bank.
In papers, the Land Bank’s lawyer Donald Jacobs said that on April 23, 2014, the court had placed the principal debtor under liquidation. Due to the breach of the loan agreements by the principal debtor, they jointly owe the Land Bank over R142m.
Van Louw was part of the development of the Comprehensive African Agricultural Development Plan that was part of the New Partnership for Africa’s Development (Nepad), designed to address the challenges of poverty, under-development and marginalisation.
She is to take the stand on Tuesday in her defence. Van Louw declined to comment.
Papers showed red flags were first raised during 2011, when Intshona Milk Products owed the Land bank over R96.1m in respect of financial advances made. This led to the restructuring of the the company.
Jaco de Vries, appearing for Van Louw, questioned a former director, Johan Louw, at Intshona Milk Products, who said: “The deal that Van Louw brokered with Pick n Pay and eventually cancelled was a big mistake.”