The finance and agriculture ministry issued a terse joint statement on 14 July that the Land Bank would be transferred from the agriculture department to Treasury with immediate effect. This means land and agriculture minister Lulama Xingwana has been removed as its political head, to be replaced by finance minister Trevor Manuel. Manuel is a political heavyweight who has retained his power base despite being closely associated with president Thabo Mbeki, who lost the ANC presidency to Jacob Zuma in December.
Senior government officials are reportedly downplaying Xingwana’s removal and deny the move is a precursor to her sacking as cabinet minister. But sources close to the ANC say Xingwana’s axing and subsequent public savaging of Land Bank chairman Themba Langa angered party leaders. H er alleged role in preventing the bank from recovering a R640 million loan clocking up R20 million in interest a year from sugar magnate Patrick Sokhela was probably the deciding factor.
The ANC is increasingly worried about an escalating food crisis and wants the bank to play a leading role in boosting agricultural production to bring down food prices. I t’s unclear whether Treasury plans to reconstitute the bank’s board, but sources say Langa has been asked to head it again. He declined to be drawn on whether he would accept the post. “It would depend on the conditions,” said Langa. “We’ll have to wait and see.” – Stephan Hofstätter
