A Prudential Authority report that found Ithala to be technically and legally insolvent.
The Public Servants Association in KwaZulu-Natal has welcomed the Special Investigating Unit probe into alleged maladministration at the Ithala Development Finance Corporation.to be technically and legally insolvent, putting over 200 000 depositors at risk of losing their funds.
KwaZulu-Natal PSA Provincial Manager Mlungisi Ndlovu says, “This investigation is not only necessary but long overdue. For years, Ithala Bank has been plagued with allegations of mismanagement, reckless lending, and preferential treatment of politically connected individuals.” Ndlovu adds: “The PSA has consistently raised concerns about these issues, including the bank’s failure to act on the R37 million IT tender scandal. This investigation represents a critical opportunity to restore accountability, recover stolen funds, and send a strong message that corruption in state entities will no longer be tolerated. However, we still believe that liquidation of the bank is premature—as we speak, workers of Ithala Bank have not been paid.
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