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11 December 2007

There has been significant progress in turning around the Land Bank in the last three months following the finalization of the Forensic Audit Report. These, among other things, include:

1. an unaudited R200 milllion net profit generated from its operational activities
2. upgrading of the Bank's rating from AA– to AA+ with respect to long-term borrowing by FITCH International Rating Agency, and
3. improvement in the organisational culture and behaviour in the bank and as such employees are highly motivated to work as a result of the management and direction of the new Board.

The Minister for Agriculture and Land Affairs, Honourable Lulu Xingwana, as the Minister responsible for agriculture in terms of the Land and Agricultural Development Bank Act, No.15 of 2002 said she was satisfied with the latest developments at the Bank and accredited the successes to monitoring and control systems put in place in a short space of time by the current Board and management.

In an effort to strengthen the governance and the management of the Bank, the process of appointing a new CEO and additional Board members has started.

As a follow-up to the implementation of the recommendations of the Forensic Report and the Cabinet Resolutions, the referral of the forensic report to the South African Police Service (SAPS) and the National Prosecuting Authority (NPA) has been put in abeyance until the completion of the internal investigations as directed by Cabinet.

Enquiries:
Godfrey Mdhluli (Media Liaison Officer)
Cell: 079 871 5437
Tel: 012 319 6843

Issued by: Ministry of Agriculture and Land Affairs
11 December 2007