Cape Town - Hundreds of farms belonging to emerging black farmers are under threat following a Land Bank warning that it has no option but to take these farms back because of non-payment of loans.
The bank's chief executive, Phakamani Hadebe, explains that if this money is not collected the bank would lose R100m per month and have to close its doors in three years' time, or again be bailed out by government.
The bank is gradually improving its image after having its name dragged through the mud in recent years because of fraud and mismanagement.
Hadebe warned that if the political pressure on the bank not to recover the debt from the emerging farmers increases, the private sector would not support the bank or take up the bank's bonds.
He said the only solution would be for the political decision makers to advance the money for development purposes.
The ANC chairperson of the parliamentary agricultural committee, Lulu Johnson, regards this prospective repossession of black farmers' farms in such a serious light that on Thursday he requested "something like" a moratorium on the sale of the land. Moratoriums on the repossession of emerging farmers' lands were in force from 2002 to 2005.
- Sake24.com
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