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Bailout or bust for state-owned Land Bank


Bailout or bust for state-owned Land Bank
By Roxanne Henderson
(Bloomberg) – Gaps in the financial statements of South Africa’s state-owned agricultural bank are a concern for creditors already fretting over the slow progress in turning the lender around.
The Auditor General issued a disclaimer over the Land and Agricultural Development Bank of Southern Africa’s annual results, citing a lack of evidence to reach a conclusive audit. The lender needs a R7bn ($468m) government bailout to ease a cash crunch, keep operating and enable it to take on new clients and meet existing customers’ full needs.
“The big worry for a lending institution is the disclaimer that is linked to inappropriate audit evidence,” Olga Constantatos, head of credit at Futuregrowth Asset Management, said by phone. “That points to a lack of record keeping, lack of internal controls around the model for loans, for impairments charges.” ....

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