Ithala SOC Limited employees are facing uncertainty as the central bank’s decision to liquidate the bank raises fears of job losses. Union representatives express concerns over the impact on workers and the community.
Economic Development, Tourism and Environmental Affairs MEC Musa Zondi is concerned about the move to liquidate Ithala Bank. Picture: SuppliedHUNDREDS of Ithala SOC Limited employees are rocked by fear that the decision by the central bank to liquidate the bank might cost them their jobs.
The National Education, Health and Allied Workers’ Union has also condemned the action that would have a devastating effect on the future of its members. An employee, who asked to remain anonymous, said the bank had done nothing wrong to warrant its closure. He said after it had lost its contract with Absa, which provided it with an operating license for clearing and settlement in the national payment system, the bank’s future became vulnerable.
He said the provincial government was in the process of coming up with a plan to raise funds through its other state-owned businesses for Ithala to secure an operating license from commercial banks, and that plan was nearer to being successful.He said the government would be fully behind Ithala in opposing PA and SARB’s court application to secure the liquidation.
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South African Government Steps In To Protect Ithala DepositorsThe Prudential Authority has applied for the provisional liquidation of Ithala SOC Limited, citing its insolvency and failure to meet regulatory conditions. The South African government has assured depositors that their funds will be protected by a government guarantee.
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