By: Nompendulo Ngubane
KwaZulu-Natal Finance MEC Francois Rodgers has welcomed the proposed withdrawal of litigation relating to the liquidation of Ithala SOC Limited.
The move follows what Rodgers described as constructive engagements with Enoch Godongwana, which appear to have paved the way for a resolution.
In a statement released by his office, Rodgers said he was pleased that “logic has prevailed”, emphasising that the primary concern throughout the process has been the protection of depositors and the prevention of further harm caused by unnecessary and protracted legal action.
He added that continued litigation was “completely unnecessary” and did not advance the interests of depositors or broader financial stability.
Ithala, a KwaZulu-Natal state-owned financial services entity, has played a significant role in providing banking and development finance services, particularly to rural and underserved communities in the province. Concerns over its potential liquidation have raised questions about the security of depositors’ funds and the socio-economic impact on vulnerable clients.
Rodgers reiterated that safeguarding depositors and maintaining confidence in the provincial financial system remain top priorities, expressing hope that the withdrawal of litigation will create space for a sustainable and lawful solution going forward.
