Land Bank must tighten up if it wants funds
THE Land Bank will have to make sweeping changes to the way its board makes decisions if it wants to receive funding from Futuregrowth Asset Management, which on Monday lifted its funding freeze on the development financier.Currently, the Land Bank board and its credit risk committee needed only a simple majority of votes to decide on issues, such as granting loans to farmers, chief financial officer Bennie van Rooy said.He told Business Day in an interview on Monday after Futuregrowth announced it had lifted its funding ban: "The recommendation was to strengthen the mandates to increase the approval requirements to somewhere between simple majority and unanimous decisions."The Land Bank is now in discussions with the asset manager regarding the amount the development financier can borrow, which Van Rooy indicated to Business Day would be granted only after Futuregrowth went through its own governance approvals, and both parties made changes to investor protection agreements."We don...
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