Dear Madam Speaker

The Land Bank has decided to foreclose on the bonds registered

against the property of Inala Farms (Pty) Ltd., which is listed as

a Schedule 3B company in terms of the PFMA, due to the fact

that the proceeds from the farming activities on the property

were not utilised to service the Land Bank loans.

Although there are ongoing discussions between the Department

of Land Affairs and the Land Bank to find a solution to somehow

salvage the property for the benefit of the land reform beneficiaries

involved in the farming activities on the property, it is

however, anticipated that the outcome will result in Inala Farms

(Pty) Ltd. being delisted as a public entity.

Under the circumstances, Inala Farms (Pty) Ltd. will not be in a

position to table an annual report for the financial year ending

28 February 2004, in terms of section 55(1)(d) of the PFMA.

In terms of section 65(2)(a) of the PFMA, I am therefore

tendering this written explanation on why Inala Farms annual

report was not tabled by August 2004 in terms of section

65(1)(a) of the PFMA and regret not having submitted a written

explanation earlier.

Kind regards