The High Court has postponed its ruling on the provisional liquidation of Ithala SOC Limited, allowing the Prudential Authority (PA) time to respond to Ithala’s urgent legal challenge. The PA, which seeks to liquidate the KwaZulu-Natal government-owned financial institution, has raised concerns about governance within the bank.
Ithala, backed by the KwaZulu-Natal Treasury, has countered these claims, accusing the Repayment Administrator, Johannes Kruger, of exceeding his authority and disrupting the bank’s operations. The KZN Treasury has assured retail depositors that their funds are secure, with plans in place to transfer accounts to a commercial bank to safeguard their interests.
Ithala SOC Limited Faces Liquidation Amid Financial Irregularities: Legal and Political Reactions
The situation has drawn sharp reactions from political parties. The Inkatha Freedom Party (IFP) has strongly opposed the Prudential Authority’s actions, while the Economic Freedom Fighters (EFF) have criticized the South African Reserve Bank (SARB), accusing it of targeting Black-owned institutions like Ithala.
The decision to delay comes as stakeholders await further developments in this high-profile case, which could have significant implications for the financial landscape in KwaZulu-Natal and the broader South African banking sector.
Pictured: Fundi Tshazibana, CEO of the Prudential Authority.
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