- The Southern African Agri Initiative (Saai) accuses the Land Bank of using bullying tactics against farmers behind with repaying their debt
- Bruce Whitfield gets input from both Saai's Chairperson Dr Theo de Jager and Sydney Soundy, Executive Manage of Strategy and Communications at the Land Bank
South Africa's Land Bank is being accused of carrying out an aggressive debt collection drive which is threatening farmers and their landholdings.
Farmers gathered for a meeting on Thursday, organised by the Southern African Agri Initiative (Saai).
The group accuses the embattled state-owned Bank of trying to save itself through what it says are "bullying tactics".
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Bruce Whitfield interviews Saai Chairperson Dr Theo de Jager and Sydney Soundy, Executive Manage of Strategy and Communications at the Land Bank.
Dr de Jager explains that as a network for family farmers, Saai's members are more small- and medium-sized enterprises.
"It's a 'family' making a living from the land" he says.
We've noticed among our members that there is this really shocking number of farming enterprises that have been knocked over, liquidated, by the Land Bank... by a few other companies too but mostly by the Land Bank, for debt which is only a fraction of the asset value of those farmers.
Dr Theo de Jager, Chair - Southern African Agri Initiative
Very often they are third- or even fouth-generation farmers on that land. They have owed much more to the Land Bank in relation to their assets before, but all of a sudden over the last few months they are being liquidated left, right and centre and once that process is done they are being left with nothing. We could not find one of the farmers who could walk out there with anything to start over again.
Dr Theo de Jager, Chair - Southern African Agri Initiative
It is also really notable that amongst those farmers who've been liquidated there's not one poor one; there's not one farmer who's really bankrupt... The farmers who are being knocked over are those with enough fat in their system that there's a lot of money to be made out of this liquidation process, and this is why we blew the whistle.
Dr Theo de Jager, Chair - Southern African Agri Initiative
Is de Jager implying there is corruption at the Land Bank? asks Whitfield.
"It is common cause that the Land Bank is in very deep trouble" the Saai Chair responds.
Just see the Auditor General's last report which was qualified on the basis that he questioned whether the Land Bank is still really a viable business. That would probably motivate the aggression behind the liquidation, especially of those from whom money could be made.
Dr Theo de Jager, Chair - Southern African Agri Initiative
I think it is quite fair to demand a proper investigation into the downstream processing of liquidations... If the Land Bank is so sure its nose is clean, it should support such an investigation into the relationship between certain officials at the Bank and the lawyer; the lawyer and the liquidators; the liquidators and the auctioneers - because usually they are exactly the same groups - and then between the auctioneers and the big buyers.
Dr Theo de Jager, Chair - Southern African Agri Initiative
De Jager maintains the real intention is not to collect debts, but to raise money to save the Bank.
Today we have listened to voice recordings and some video clips where these lawyers and these liquidators act on farms, saying to farmers 'Hurry up, I have another six farmers to knock over today'.
Dr Theo de Jager, Chair - Southern African Agri Initiative
The Land Bank's Soundy says they deal with clients on a case-by-case basis and the allegations are baseless.
He also insists that the Bank has been following the same process of "disciplined credit management controls" in recent months as it has in the past.
We took a decision in the course of the last year or so to enforce clients that were managed on our behalf through so-called service level agreement intermediaries... When we enforced those clients there were indications of instances where we needed to ensure that the same standard of credit management discipline is appropriately instituted.
Sydney Soundy, Executive Manager: Strategy and Communications - Land Bank
Legal action is actually a last resort once we've tried the other opportunities to resolve the challenges of a client.
Sydney Soundy, Executive Manager: Strategy and Communications - Land Bank
Soundy notes that the Bank can't influence due court processes that regulate the repossession or attachment of assets, or liquidation.
"So there's no way in which we think there would be a 'cabal' that then also controls the way in which decisions get made when cases go to court."
Would he consider a meeting with de Jager to review the evidence he claims to have?
"Definitely!" responds the Land Bank Executive Manager.
Scroll to the top of the article to listen to the interviews
This article first appeared on CapeTalk : Land Bank refutes allegations of 'orchestrated attack' on farmers to save itself
