KwaZulu-Natal Premier Thamsanqa Ntuli has welcomed the possible withdrawal by the Prudential Authority (PA) and the Repayment Administrator, Johan Kruger, of their court application seeking the liquidation of Ithala SOC Limited and Ithala Bank.
Ntuli described the development as a significant breakthrough following months of intensive engagements and negotiations led by the Provincial Government to safeguard the historic institution.
“This matter has never been merely about a financial entity; it has always been about protecting the economic aspirations of the people of KwaZulu-Natal, particularly the rural poor, small businesses and historically marginalised communities who rely on Ithala,” Ntuli said.
Ntuli has led engagements to resolve the impasse, working with Members of the Provincial Legislature, including Economic Development, Tourism and Environmental Affairs MEC Reverend Musa Zondi and Finance MEC Francois Rodgers.
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The matter was elevated to the national leadership level, including discussions with President Cyril Ramaphosa, as part of efforts to secure a sustainable and lawful resolution.
The Premier emphasised that while the possible withdrawal of the liquidation application is a positive and encouraging step, it does not mark the end of the journey.
“There is still a substantial amount of work that lies ahead. Our focus now shifts decisively to revitalising and stabilising Ithala so that it can stand firmly on its feet again and operate as a well-oiled, fully compliant, and sustainable financial institution,” he said.
The Premier acknowledged that the process has not been smooth sailing, describing it as a complex and, at times, difficult journey that required patience, discipline, and constructive engagement across different spheres of government and regulatory authorities.
“We remain committed to ensuring that Ithala emerges stronger, more resilient and properly structured to fulfil its developmental mandate. This institution has played a critical role in extending financial services to communities that were historically excluded from mainstream banking. That legacy must be preserved and strengthened,” he said.
The Provincial Government will continue working collaboratively with regulators, National Treasury, and other relevant stakeholders to ensure full compliance with regulatory frameworks, while safeguarding the interests of depositors and the broader provincial economy.
Ntuli called on residents of KwaZulu-Natal to continue placing their trust in the Provincial Government as it steers Ithala through what he described as a critical phase.
“We understand the anxiety and uncertainty that this matter has caused. We assure the people of our province that their government remains fully seized with the task at hand. We ask for continued patience and confidence as we work diligently to secure Ithala’s long-term stability and growth,” he said.
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