BL Premium writes that the high turnover of executives and unresolved corporate governance issues contributed significantly to the Land Bank’s crisis, according to analysts and investors of the troubled state-owned agricultural lender.  

The Land Bank defaulted on obligations last week prompting a demand for the repayment of monies owed.  It is now seeking a 12-month moratorium on all capital and interest payments due in the next six months.  According to Nedbank Corporate and Investment Bank credit analyst Jones Gondo, the government has no choice but to support the bank whatever happens next.  “We have been concerned about the flux in executive management which until February this year meant that the Land Bank had no permanent CEO for 15 months.  This was one of the things we flagged in our most recent corporate governance review,” remarked Tarryn Sankar of Futuregrowth Asset Management.  The Land Bank had a sizeable number of interim CEOs and CFOs over the last year or so, and its reputation was further blighted by the leave of absence of its head of internal audit.  To bring stability to the organisation, the bank appointed Khensani Mukhari as permanent CFO in February and Ayanda Kanana as permanent CEO at the beginning of March.

• Read the full original of the report in the above regard by Warren Thompson at BusinessLive (paywall access only)

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