EDITORIAL: Land Bank debacle points to failures of the state

The last thing President Cyril Ramaphosa needs right now is for another state-owned company to hold out a begging bowl.

Upon further analysis, Land Bank found the missed payment amount on the credit facility fell below the threshold required to trigger a cross default under terms of bonds issued in 2010 and 2017. By 2019, the company profit had dropped to R181m, its cost-to-income ratio — a measure of non-interest expenses as a proportion of income — had crept above 60% while the quality of its loan book had deteriorated, with the percentage of bad loans doubling to about 6% compared with 2015.

Even so, Land Bank’s board and shareholder, the government, cannot escape blame for the crisis. The bank has been rudderless since December 2018 after CEO Tshokolo Nchocho resigned, kicking off a revolving-door policy in the corner office with a string of acting CEOs.

Source: News Formal (newsformal.com)

I wonder what's the relationship between the state of the LB now and the deals done prior years that gave a breath of life to one coop which has since bought a commercial banking licensing just across the value from the LB?

... and this is the same state we are looking at to manage the covid-19 relief programme

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