A tough year for Agribank

THE past year was a tough one for Agribank.This emerges in the end-of-year message of the Chief Executive Officer of Agribank, Leonard Iipumbu.

Reflecting on the year 2005, he especially highlighted the fact that Agribank has received “negative publicity in the electronic and printed media”. The Namibian reported in October that Agribank was close to bankruptcy after making numerous risky loans with little chance of repayment.It also understated its bad debt and faces a legal claim from former CEO Tjeripo Hijarunguru over the termination of his contract.But the CEO said that despite these setbacks, Agribank did achieve some positive results in 2005.The Bank has undertaken a review of the land-valuation formula to control the upsurge in farm prices.The strategy is to limit the purchase price to the Agricultural Fair Value price based on the income-production capacity of the land.It also aims to promote the training of emerging farmers in order to build human capital and maximise the profitable use of agricultural land.Agribank will promote networking and collaboration to ensure distribution and utilisation of knowledge through internships, research and mentorship.Agribank has also strengthened the recovery process for loans in order to improve the liquidity of the Bank.In addition, it has initiated several programmes to improve customer service and its corporate image.The Namibian reported in October that Agribank was close to bankruptcy after making numerous risky loans with little chance of repayment.It also understated its bad debt and faces a legal claim from former CEO Tjeripo Hijarunguru over the termination of his contract.But the CEO said that despite these setbacks, Agribank did achieve some positive results in 2005.The Bank has undertaken a review of the land-valuation formula to control the upsurge in farm prices.The strategy is to limit the purchase price to the Agricultural Fair Value price based on the income-production capacity of the land.It also aims to promote the training of emerging farmers in order to build human capital and maximise the profitable use of agricultural land.Agribank will promote networking and collaboration to ensure distribution and utilisation of knowledge through internships, research and mentorship.Agribank has also strengthened the recovery process for loans in order to improve the liquidity of the Bank.In addition, it has initiated several programmes to improve customer service and its corporate image.