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Land expropriation can succeed if no productive land is taken – Land Bank
For land expropriation without compensation (EWC) to succeed productive land must not be taken out of production, the Land Bank said on Monday.
The whole process must also be free of corruption, it said.
The Land Bank believes that, if done right, land reform, even without compensation, can be good for South Africa.
However, it warns that if Government does not protect it as a lender, it will have to cough up R9 billion due to agreements it made that protects against EWC, or default on R41 billion of its loans (due to standard clauses on cross defaults), which Government would have to settle.
The Land Bank reported a profit of R254 million for the year to 31 March 2018.
The Money Show’s Bruce Whitfield interviewed Land Bank CEO TP Nchocho.
Listen to the interview in the audio below (and/or scroll down for quotes from it).
The total loan book stands as R46 billion… R6 billion [is to black farmers]…
TP Nchocho, Land Bank
We have no reason to believe the policy outcome will be such that it translates into non-recognition of the creditor status of banks…
TP Nchocho, Land Bank
R1.5 billion [of loans made the past year] went to farms that are majority owned by black people…
TP Nchocho, Land Bank
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