The bank does not have a solvency and liquidation problem, according to the department head
Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.
The legal instructions have frozen all activity on Ithala’s accounts, making it impossible for the bank to operate. Staff have not been paid their January salaries. The bank is set to be in the same court on Thursday to oppose an application by the Prudential Authority for provisional liquidation of the entity. Ithala will be supported by the provincial treasury and KwaZulu-Natal’s department of economic development in this matter.
The loss would also severely undermine KwaZulu-Natal’s developmental agenda, which depends on institutions like Ithala to drive inclusive economic growth. In November last year, Ithala won a court case against him, with costs, to return control of Ithala’s non-banking assets and operations, saying he had overstepped his mandate and had usurped the authority of the SOC’s board and management. It is this ruling that Ithala was to ask the court to enforce on Tuesday.
Contrary to Kruger’s stance of the bank being technically and legally insolvent, Coetzee said in the affidavit that the bank “does not have a solvency and liquidity problem”.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
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.
Read more »
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.
Read more »
South African Finance Regulator Seeks Liquidation of Ithala, National Treasury Steps In to Protect DepositorsThe South African Reserve Bank's Prudential Authority has applied for the provisional liquidation of Ithala, a development finance agency owned by the KwaZulu-Natal province. Citing Ithala's insolvency and failure to secure capital commitments, the Prudential Authority believes liquidation is in the best interest of the approximately 257,000 depositors. While Ithala operated as a bank without a banking license, its depositors' accounts will be closed pending court processes. The National Treasury has intervened, assuring depositors that their funds will be protected by a government guarantee. It plans to facilitate a smooth transition to other banking institutions.
Read more »
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
Read more »
Ithala Bank Faces Closure Amidst Political OutcrySouth Africa's only state-owned bank, Ithala Bank, is facing potential liquidation following an application by the South African Reserve Bank (SARB). The move has sparked widespread condemnation from political parties who argue that Ithala plays a vital role in supporting financially marginalized black communities. They insist the bank's closure would be detrimental to black economic empowerment and accuse the SARB of acting recklessly.
Read more »
IFP Vehemently Opposes Liquidation of State-Owned IthalaThe Inkatha Freedom Party's spokesperson Mkhuleko Hlengwa said the party opposed the liquidation of Ithala Bank, which was founded by Mangosuthu Buthelezi.
Read more »