Minister axes Land Bank clean- up man

Land Affairs Minister Lulu Xingwana said Langa had been removed as Land Bank chairman and director with 'immediate effect' and accused him of 'disregarding collective decisions of the board, undermining decision-making processes of the board and unilateral decision-making'. But Langa told The Times that Xingwana was acting 'in bad faith', saying he had recently 'wanted to resign' but that Xingwana 'said I shouldn't'. Langa denied taking unilateral decisions. 'There is no decision that I have taken alone and if she has proof of that then she must show it,' he said. Langa was appointed the chairman of the bank in March and was given the task of cleaning up the troubled institution. Full report in The Times

Langa's departure serves only to sound the alarm bells at the institution even louder, notes a Moneyweb report, which also raises questions about the real reason for his sacking and notes that he is not the first to go. Earlier media reports have said that CFO Xolile Ncame had been fired for supplying the bank's external auditors Ernst & Young with a dossier pointing to serious financial irregularities in payments made by the bank. In June, Xingwana denied media reports that she was 'interfering' in the activities of the Land Bank, saying her interests were limited to those of a shareholder. The Ministry said the board of the Land Bank was independent and its decisions were based on 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,' it said. But the Financial Mail has reported the payments referred to by Ncame were made on behalf of the Department of Agriculture's R100m AgriBEE fund launched last year. Ncame's dossier contained prima facie evidence of fraud, and auditors PricewaterhouseCoopers had been appointed to investigate its allegations and 'other whistle-blower reports'. Full Moneyweb report

The DA has come out in support of Langa, blaming Xingwana's 'meddling hand' for the axing. According to a report on the Mail & Guardian Online site, DA agriculture spokesperson Kraai van Niekerk said Langa had been working consistently to turn the bank around in the wake of a series of scandals relating to the misappropriation of funds and other irregularities at the bank. Van Niekerk said Langa had previously indicated his dissatisfaction with Xingwana's constant interference in the activities of the Land Bank board, and in June had voiced his desire to quit the institution. Despite Langa's efforts to get the troubled bank back on track, Xingwana seemed nevertheless determined to meddle in its affairs - to the great detriment of the institution. 'In particular, her decision to squash the findings of the forensic audits into irregularities at the bank continues to impede efforts to rehabilitate the institution.' Full report on Mail & Guardian Online site