The Inkatha Freedom Party's spokesperson Mkhuleko Hlengwa said the party opposed the liquidation of Ithala Bank, which was founded by Mangosuthu Buthelezi.
The Inkatha Freedom Party has called for the government to remove Johannes Kruger, who the Reserve Bank employed to investigate the Ithala BankThe IFP is crying foul and is accusing the PA's repayment administrator of interfering in the bank's mattersThe IFP is fighting to keep Ithala's doors open.
The Reserve Bank appointed a Repayment Administrator in 2023. The Administrator found that Ithala is legally and technically insolvent and that the KZN provincialdidn't provide capital commitments. Furthermore, the PA gave it repeated extensions to regularise its operations until a final notice was issued in 2022. By then, Ithala had failed to comply with the conditions.
Another bank that faced a similar fate was VBS Mutual Bank. It was placed into liquidation in 2018 after investigations into its operations revealed widespread corruption. Politicians, including former Justicefor failing to meet salary obligations. The club also faces an R40 million tax debt following investigations into club owner Shauwn Mkhize.Mkhize has been under the microscope since she allegedly failed to pay her taxes. The club also was unable to pay salaries.
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South Africa's National Treasury to Guarantee Ithala Depositors' FundsFollowing the provisional liquidation application for Ithala SOC Limited, the South African National Treasury has assured depositors that their funds will be protected by a government guarantee. This measure aims to alleviate concerns and ensure a fair distribution of available funds as Ithala faces closure due to insolvency.
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Ithala faces liquidation amid insolvency concernsIthala's provisional liquidation may result in the closure of 257 000 depositors’ accounts while legal proceedings are under way
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