Gordhan warns Land Bank culprits

Johannesburg - Those guilty of financial crimes at the Land Bank will be brought to book, Finance Minister Pravin Gordhan said on Monday.

"By their very nature, financial crimes are complex and take a long time to be unravelled," he told a presentation of the state-owned Land Bank's 2009 annual results in Midrand.

"No stone will be left unturned. I am sure our criminal justice system will see that the culprits are dealt with in the right way."

He could not provide more information as the four forensic investigations currently underway were at a "sensitive" stage.

The bank's profit for the year was R166.6m, representing a significant increase on the R17.5m recorded in the previous year.

Profit from banking operations of R240.9m was achieved, following a loss of R19.8bn in the previous financial year.

"The balance sheet is healthier and the Land Bank is well on the way to recovery," Gordhan said.

"However, there are many challenges and it'll be a tough road to walk."

Commenting on the country's economy, the minister noted South Africa was likely to lag behind the economic recovery other countries were beginning to talk of.

"There is a lot of talk about green shoots and the possibility of the recession having bottomed out. We are seeing the beginnings of optimism in the world about the global economy.

"However, South Africa's optimism will come with a lag just as the recession did itself."

The Land Bank's CEO Phakamani Hadebe confirmed that four forensic investigations were underway concerning financial crimes at the institution.

"The Attorney General has confirmed that historical special investigations have been handed to the relevant authorities and investigations are ongoing."

Both the Hawks and the Serious Economic Offences Unit were involved.

"The Land Bank has even roped in external capacity to assist the SA Police," Hadebe added.

- Sapa