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Minister 'removes' Land Bank chairperson

8th July 2008

By: Sapa

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Agriculture and Land Affairs Minister Lulu Xingwana has removed Themba Langa as chairman of the Land Bank, it was announced on Monday.

He had also been removed as a member of the Land Bank board of directors with immediate effect, the ministry and Land Bank board said in a joint statement.

"The minister removed Mr Langa from his position because of disregarding collective decisions of the board, undermining decision-making processes of the board and unilateral decision-making," they said.

The board's deputy chairman, Professor Herman van Schalkwyk, would act as chairman until further notice. A new chairman would be appointed as soon as possible.

The decision had the support of the board, which said it distanced itself from "factually inaccurate" recent media statements attributed to Langa.

In June, Xingwana denied interfering in the activities of the Land Bank. This, out of concern at media reports to this effect.

"The ministry would like to state it for the record that the minister's interests in the activities of the board of the Land Bank are those of the shareholder and she has no other role to play in the activities of the board."

The ministry said the board of the Land Bank was independent and its decisions were based on the recommendations from management and the various sub-committees, which were tasked to formulate the position that best served the interests of the bank.

"It is misleading and even mischievous to suggest that the ministry or the minister may have played any role in any credit matters.

"In those instances when inquiries from outside are sent directly to the Minister of Agriculture and Land Affairs, Ms Lulu Xingwana always refers the matter to the board, and asks the board to advise her on the decisions that they have made and she respects decisions of the board."

At the time, the ministry also rejected media reports that Langa was expected to tender his resignation the week of June 23 following a fallout with Xingwana.

The ministry quoted a letter it received from Langa: "Minister, I [Langa] disassociate myself from Media24 and Sunday Times reports".

It said Xingwana had also not received a letter of resignation from the chair of the risk committee, Modise Motloba, whose contribution to the board she valued.

"The chair of the audit committee, Mr Joe Mthimunye, tendered his resignation, and the minister accepted his resignation because she had intended to ask him to resign because of his poor attendance of board meetings."

The ministry said all decision-making regarding the Agri-BEE fund were made within the department, and the Land Bank then disbursed the funds.

"A decision was taken by the board to investigate certain of the transaction within the Agri-BEE, and this investigation has the full support of the minister.

"This decision to investigate these transactions was not taken by any one individual and the investigation enjoys the full support of the board."

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