THE role of the Land Bank is destined for substantial change under new CEO Dr Helena Dolny, but fears that future loans will be channelled to emergent (black) farmers at the expense of commercial (white) farmers have been denied emphatically.

Criticism of Dolny's appointment has come from senior executives of agricultural groups who accuse her of having socialist ideals - she is the widow of Joe Slovo - of favouring the development of small farmers only and of having no banking experience.

In response, the charming and eloquent Dolny insists that these suggestions are very far from the truth.

"They obviously feel threatened because I have a leftist background. I can assure them though, that I am not a mutant, but rather a hybrid, a pragmatist and I will take the best from the capitalist world and the best from the socialist world," she says.

Dolny's mother was a Czech and her father Polish so she grew up in a home both anti-fascist and anti-communist.

She was brought up in England with subsequent exposure to non-democratic socialism in Mozambique and Eastern Europe, and she ended up with strong criticisms but also admiration for the elements of different economies.

"So, for example, I think incentive systems are essential, but so is redistribution and democratisation and I remain, at heart, essentially committed to democratic socialism," she says.

In the past, the main activities of the Land Bank have been to make direct loans to farmers on a medium- to long-term basis with land as the collateral.

This has made up half of the debtor book of R11-billion, with the other half representing loans to white co-operatives with the crop as collateral.

Dolny says that a new target for the bank will be emergent farmers, and that land or crop production will not necessarily be the criteria for collateral.

"In many countries a Land Bank equivalent makes loans to people who do not necessarily rely on farming as a sole source of income. In the UK, for instance, farmers get only 50% from crop production and the rest from processing the crop.

"Our energies will now go in a similar direction but, while the size of the loan will be irrelevant, the pay-back criteria will remain intact.

"We need a solid loan book and commercial farmers will be essential in providing this."

It is expected that the broadening of the bank's focus to include emergent farmers will result in an increase in its loan book and additional funds will be raised in the normal way through the money and capital markets.

Dolny is not too worried about her lack of banking knowledge.

"I am very good at saying 'I don't know' and the bank has an excellent staff who I'm sure will be supportive.

"I am good at getting a team together and at spotting who is good. We have a completely new board with new skills. It is really 70% leadership and 30% management, but although the bank works well I will not abrogate responsibility."

Before she takes up her position at the beginning of next month, Dolny will spend time at the Agricultural Credit Institute in Paris and at the London Business School for a period of "understudy" as she puts it.

In her new position, she will probably have little spare time for outside activities, but she confesses to be eclectic and hedonistic.

"I'll do anything to enjoy myself. I'll go to a gym, have a steam bath, then go home have a drink and hamburger and chips."

Dolny has not yet met her critics, but is quite prepared to sit down and discuss any concerns they may have.

They cannot help but be charmed by this exciting and knowledgeable new CEO.

Don Robertson

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