However, asked for confirmation by Sapa, agriculture andland affairs ministry spokesman Godfrey Mdhluli was reticent."I cannot deny or confirm [the report]," he said.
The broadcaster said it had "reliably learnt" the five, including board chairman Lungile Mazwai, had been fired by Agriculture and Land Affairs Minister Lulu Xingwana.
This amid claims that they mismanaged over R1 billion of bank funds. Weekend newspapers reported that top Land Bank officials had siphoned off more than R2 billion meant for farmers to fund personal ventures.
Cabinet resolved earlier this month that a report on a forensic audit conducted by Deloitte & Touché around the financial management activities of the Land Bank be referred to the SA Police Service and the National Directorate of Public Prosecutions for further investigation and possible prosecution.
In a statement on Wednesday, the agriculture and land affairs ministry said the forensic audit report revealed some ultra-vires transactions falling outside of the scope of the Land Bank mandate and Act.
This had already been noted in the audit opinion for the 2007 financial year end. The amounts reported as "looted" in the weekend newspapers were inaccurate.
The bank's exposure to the land for development transactions was about R1 billion, which had been disclosed and provided for in the Annual Financial Statements for the 2006/7 financial year. These transactions represented active loans for which the value of the security on these transactions was adequate to cover the exposure.
The link of disciplinary action against some of the executive managers of the Land Bank to the forensic audit, as mentioned in the media reports, was also not correct.
Makgale Gwangwa, head of treasury, had not been implicated in the forensic audit report and was never suspended from duty on any issue. This also applied to Kumenderi Pillay, senior finance manager, who recently resigned.
The department, with the assistance of the National Treasury, was overseeing the crafting of a turn-around strategy for the bank. A sustainable business model was being developed to ensure delivery on government's mandate and a new funding model that would enhance sustainability and continuity.
The appointment of a new chief executive officer would be expedited and the composition of the board strengthened as soon as possible, the ministry said.
In March this year, Cabinet decided to inject R700 million and to extend a R1.5 billion Letter of Comfort to the Land Bank. As a condition to the release of this financial backing by government, the Land Bank was tasked to turn around its operations, become sustainable and increase its activities in development financing.
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