KZN Economic Development MEC Musa Zondi questions ‘real reasons’ behind Ithala liquidation case

Show Voice Options The SA Reserve Bank’s Prudential Authority has filed papers in the Pietermaritzburg High Court for the provisional liquidation of Ithala SOC Limited. This comes after the authority appointed a repayment administrator responsible for the repayment of deposits. Although commonly referred to as a bank, Ithala was never granted a banking licence. However, the Minister of Finance granted an exemption to Ithala allowing the entity to receive deposits while it regularised its operations. According to the SA Reserve Bank, the repayment administrator has established that Ithala is technically and legally insolvent, exposing depositors to potential loss of their deposits.