Last week, the Sunday Times reported that top Land Bank officials had siphoned off more than R2 billion meant for farmers, to fund their close friends' and associates' ventures. "The bank's exposure to the land for development transactions is about R1 billion, which has been disclosed and provided for in the Annual Financial Statements for the 2006/7 financial year.

The aforementioned transactions represent active loans for which the value of the security on these transactions is adequate to cover the exposure," he said.

The Sunday Times reported that Cabinet had been "forced to call for the Land Bank board to be fired and for criminal charges to be brought against virtually the entire top executive who were implicated in the forensic probe."

On Tuesday, the ministry said the link of the disciplinary actions against some Land Bank executive managers with the forensic audit was not correct.

"Makgale Gwangwa, Head of Treasury, has not been implicated in the forensic audit report and was never suspended from duty on any issue. This also applies to Ms Kumenderi Pillay, Senior Finance Manager, who recently resigned."
The ministry said a new Chief Executive Officer for the bank would be speedily appointed.

"The Land Bank is also in the process of recruiting appropriately skilled individuals to assist the Bank in implementing the turn around and development mandate. This process will be concluded before the end of this financial year."